Core Viewpoint - Puma Biotechnology will host a conference call on February 26, 2026, to discuss its fourth quarter and full year 2025 financial results, following the release of these results [1]. Company Overview - Puma Biotechnology, Inc. is a biopharmaceutical company focused on developing and commercializing innovative products to enhance cancer care [1]. - The company in-licensed the global development and commercialization rights to PB272 (neratinib) in 2011, which was approved by the FDA in 2017 for treating early stage HER2-overexpressed/amplified breast cancer [1]. - Neratinib is marketed in the U.S. as NERLYNX® and has received additional FDA approvals for various cancer treatments [1]. Recent Developments - In September 2022, Puma entered into an exclusive license agreement for the anti-cancer drug alisertib, focusing on small cell lung cancer and breast cancer [1]. - The company initiated a Phase II clinical trial for alisertib monotherapy in February 2024 and another trial in November 2024 for its combination with endocrine therapy [1]. - Puma Biotechnology was added to the Nasdaq Biotechnology Index effective after the close of trading on December 19, 2025 [1].

Core Insights - Puma Biotechnology has been added to the Nasdaq Biotechnology Index, effective after the close of trading on December 19, 2025 [1] Company Summary - The inclusion of Puma Biotechnology in the Nasdaq Biotechnology Index signifies a recognition of the company's position within the biotechnology sector [1] - This addition may enhance the visibility and credibility of Puma Biotechnology among investors and stakeholders [1] Industry Summary - The Nasdaq Biotechnology Index is a key benchmark for the biotechnology sector, reflecting the performance of biotechnology companies [1] - Inclusion in this index may lead to increased investment interest in the biotechnology industry as a whole, particularly in companies that are recognized for their innovation and growth potential [1]

Core Viewpoint - The investment thesis for Puma Biotechnology (PBYI) remains optimistic despite potential concerns, with a focus on the scientific aspects of the business and the importance of due diligence in biotech investments [1]. Group 1 - The author has a PhD in biochemistry and extensive experience analyzing clinical trials and biotech companies, which informs the positive outlook on Puma Biotechnology [1]. - There is a commitment to educating investors about the science behind biotech businesses to help them avoid investment pitfalls [1].

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Core Insights - Puma Biotechnology reported third-quarter 2025 adjusted earnings of 21 cents per share, exceeding the Zacks Consensus Estimate of 9 cents, but down from 45 cents in the same quarter last year [2][7] - Total revenues for the third quarter were $54.5 million, surpassing the Zacks Consensus Estimate of $48 million, but reflecting a 32.3% year-over-year decline due to reduced product supply revenues and higher gross-to-net reductions [3][7] - The company raised its 2025 revenue guidance to $220-$223 million, up from the previous range of $212-$222 million, indicating a positive outlook for Nerlynx product sales [10][11] Financial Performance - Product revenues from Nerlynx totaled $51.9 million in Q3, a decrease of 7.5% year over year, yet above management's guidance of $46-$48 million [5][7] - Royalty revenues were $2.6 million, significantly down from $24.4 million in the prior year, but exceeded the model estimate of $2.2 million [8] - Total operating costs for the quarter were $44.9 million, down 23.1% year over year, while research and development expenses rose 27.2% to $15.9 million [8][9] Market Performance - Shares of Puma Biotechnology have increased by 60.7% year to date, outperforming the industry average rise of 11.5% [4] Guidance and Future Outlook - For Q4 2025, total revenues are expected to be between $67-$70 million, with Nerlynx product sales projected at $54-$56 million and royalty revenues anticipated in the range of $13-$14 million [11] - The company is also developing alisertib for various cancers, with interim data from ongoing studies expected in the first half of 2026 [12][13][14]

Group 1: Earnings Performance - Puma Biotech reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, but down from $0.45 per share a year ago, representing an earnings surprise of +133.33% [1] - The company has surpassed consensus EPS estimates for the last four quarters [2] - Revenue for the quarter ended September 2025 was $54.5 million, surpassing the Zacks Consensus Estimate by 12.67%, but down from $80.5 million year-over-year [2] Group 2: Stock Performance and Outlook - Puma Biotech shares have increased approximately 62.1% since the beginning of the year, compared to the S&P 500's gain of 15.6% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $69.49 million, and for the current fiscal year, it is $0.66 on revenues of $216.3 million [7] Group 3: Industry Context - The Medical - Biomedical and Genetics industry, to which Puma Biotech belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Puma Biotech's stock performance [5]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was reported at $54.5 million, with product revenue net at $51.9 million, an increase from $49.2 million in Q2 2025 but a decrease from $56.1 million in Q3 2024 [5][27] - Net income based on GAAP for Q3 2025 was $8.8 million, or $0.18 per basic share, compared to $5.9 million, or $0.12 per share in Q2 2025 [26] - Non-GAAP net income for Q3 2025 was $10.5 million, or $0.21 per share, reflecting an increase from the previous quarter [27] Business Line Data and Key Metrics Changes - Product revenue was impacted by approximately $3.1 million of inventory billed at specialty pharmacies and distributors [6] - Royalty revenue decreased to $2.6 million in Q3 2025 from $3.2 million in Q2 2025 and $24.4 million in Q3 2024 [6][29] - Nerlynx sales included U.S. net sales of $51.8 million in Q3 2025, up from $48.8 million in Q3 2024 [21][28] Market Data and Key Metrics Changes - New prescriptions for Nerlynx were down approximately 3% compared to Q2 2025, while total prescriptions decreased by about 1% [6] - Demand for Nerlynx increased by about 3% quarter-over-quarter and year-over-year, with stronger growth in the specialty distributor channel [23] Company Strategy and Development Direction - The company is focused on expanding its market presence for Nerlynx, particularly among patients at higher risk of recurrence [18] - Puma is evaluating several drugs for potential licensing or acquisition to diversify its portfolio [14] - The company aims to maintain positive net income while managing expenses effectively [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving year-over-year demand growth for Nerlynx in the U.S. for the first time since 2018 [37] - The company anticipates net income for the full year 2025 to be in the range of $27 million to $29 million, reflecting ongoing financial discipline [31] Other Important Information - The company reported cash burn of approximately $1.6 million in Q3 2025, with total outstanding principal debt reduced to approximately $33 million [34] - Anticipated net product revenue for Q4 2025 is projected to be between $54 million and $56 million [32] Q&A Session Summary Question: What is the evaluation bar for the breast cancer interim? - Management indicated that the previous trial, TBCRC41, will serve as a comparison for evaluating alisertib in combination with endocrine therapy [40][41] Question: Would the company consider going negative with data if it supports a pivotal program? - Management noted that while they aim to remain profitable, they are open to staggering indications to control expenses while pursuing pivotal trials [42][45]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was reported at $54.5 million, with product revenue net at $51.9 million, an increase from $49.2 million in Q2 2025 but a decrease from $56.1 million in Q3 2024 [5][20][27] - Net income based on GAAP for Q3 2025 was $8.8 million, or $0.18 per basic share, compared to $5.9 million, or $0.12 per share in Q2 2025 [25] - Non-GAAP net income for Q3 2025 was $10.5 million, or $0.21 per share, reflecting an increase from the previous quarter [26] - Gross-to-net adjustment in Q3 2025 was approximately 25.9%, up from 20.8% in Q2 2025, primarily due to higher Medicare rebates [27] Business Line Data and Key Metrics Changes - Product revenue from Nerlynx sales was $51.9 million in Q3 2025, up from $49.2 million in Q2 2025 but down from $56.1 million in Q3 2024 [5][20] - Royalty revenue decreased to $2.6 million in Q3 2025 from $3.2 million in Q2 2025 and $24.4 million in Q3 2024 [6][27] - Total prescriptions for Nerlynx declined approximately 1% compared to Q2 2025 and 4% year over year [22] Market Data and Key Metrics Changes - U.S. net sales of Nerlynx in Q3 2025 were $51.8 million, compared to $48.8 million in Q3 2024 [27] - The specialty pharmacy channel accounted for about 65% of the business, while the specialty distributor channel made up 35% in Q3 2025 [19] Company Strategy and Development Direction - The company is focused on expanding its market presence for Nerlynx and enhancing clinical education through marketing initiatives [15][16] - Ongoing clinical trials for alisertib are being prioritized, with a focus on identifying biomarkers that may predict better outcomes [10][11] - The company is evaluating potential acquisitions to diversify its portfolio and leverage existing infrastructure [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive net income for the full year 2025, driven by disciplined financial management [34][35] - The company anticipates a demand increase for Nerlynx in the U.S. for the first time since 2018 [34] - Future guidance includes expectations for net product revenue in Q4 2025 to be between $54 million and $56 million [30] Other Important Information - The company reported cash burn of approximately $1.6 million in Q3 2025, with total outstanding principal debt decreasing to about $33 million [32] - Anticipated R&D expenses are expected to increase by 20-25% year over year due to faster enrollment in clinical trials [32] Q&A Session Summary Question: What is the evaluation bar for alisertib in combination with endocrine therapy? - Management indicated that the previous trial TBCRC41 will serve as a comparison for efficacy, focusing on the third-line treatment space for HER2-negative breast cancer [38][39] Question: Would the company consider going negative with data if it supports a pivotal program? - Management noted that while they aim to remain profitable, they are open to staggered spending on indications to control cash burn [40][41] Question: Will a pivotal phase three trial require a partner? - Management stated that they do not anticipate a large trial and believe it can be managed within their financial framework, especially as debt is paid down [42][43]

Financial Performance - Total revenue for Q3 2025 was $54.475 million, a decrease of 32.3% compared to $80.542 million in Q3 2024[15] - Product revenue for Q3 2025 was $51.902 million, down from $56.136 million in Q3 2024, representing a decline of 7.3%[15] - Net income for Q3 2025 was $8.844 million, a decrease of 56.5% compared to $20.317 million in Q3 2024[15] - Net income for the nine months ended September 30, 2025, was approximately $17.7 million, compared to $10.973 million for the same period in 2024, representing a 61.9% increase[31] - Total revenue for the nine months ended September 30, 2025 was approximately $152.9 million, a decrease of $18.5 million (10.8%) from $171.4 million in the same period of 2024[206] - Product revenue, net for the nine months ended September 30, 2025 was approximately $144.2 million, an increase of $3.4 million (2.4%) from $140.8 million in the same period of 2024, due to a 3% increase in domestic sales[207] - Royalty revenue for Q3 2025 was approximately $2.6 million, a significant decrease of $21.8 million (89.4%) from $24.4 million in Q3 2024, mainly due to timing of sales in China[196] - Royalty revenue decreased to approximately $8.7 million for the nine months ended September 30, 2025, down from $30.6 million in the same period of 2024, primarily due to reduced sales to international licensees, particularly in China[208] Assets and Liabilities - Total current assets decreased to $143.580 million as of September 30, 2025, from $147.658 million at December 31, 2024, a decline of 2.3%[13] - Total liabilities decreased to $87.594 million as of September 30, 2025, down from $121.208 million at December 31, 2024, a reduction of 27.7%[13] - Stockholders' equity increased to $115.268 million as of September 30, 2025, compared to $92.125 million at December 31, 2024, an increase of 25.1%[13] - Cash and cash equivalents decreased to $53.525 million as of September 30, 2025, from $69.219 million at December 31, 2024, a decline of 22.7%[13] - The company had a total accumulated deficit of $1,297.213 million as of September 30, 2025, compared to $1,314.886 million at December 31, 2024, a reduction of 1.3%[13] - Total accounts receivable, net increased to $33.565 million as of September 30, 2025, compared to $32.011 million as of December 31, 2024[113] Research and Development - Research and development expenses for Q3 2025 were $15.912 million, up 26.4% from $12.547 million in Q3 2024[15] - R&D expenses for Q3 2025 increased to approximately $15.9 million, up $3.4 million (27.1%) from $12.6 million in Q3 2024, driven by increased clinical trial activity for alisertib[199] - The company has invested significantly in the development and commercialization of its lead product, NERLYNX, which is expected to constitute the majority of product revenue for the foreseeable future[94] - The company initiated the ALISCA™-Lung1 Phase II trial for alisertib in February 2024 and the ALISCA™-Breast1 Phase II trial in November 2024[179] Commercialization and Licensing - The company is commercializing NERLYNX® for HER2-positive breast cancer and has in-licensed alisertib for potential treatment of various cancer types[24] - The company entered into an exclusive license agreement with Takeda for alisertib, with an upfront fee of $7 million and potential future milestone payments of up to $287.3 million[30] - The company plans to continue pursuing commercialization of NERLYNX in regions outside the United States, pending regulatory approvals[29] - The company recognizes revenue from product sales when the specialty pharmacy or specialty distributor obtains control of the product, which occurs upon delivery[49] - The company recognizes license revenue when the license term commences and the licensed data, technology, or product is delivered[62] Operating Expenses - Total operating costs and expenses for the nine months ended September 30, 2025, were $132.7 million, a decrease of 13.7% from $153.8 million in 2024[39] - Selling, general and administrative (SG&A) expenses were approximately $52.5 million for the nine months ended September 30, 2025, compared to $63.5 million in 2024, reflecting a decrease of 17.4%[210] - Professional fees and expenses saw a significant decrease of 44.9%, dropping from $25.1 million in 2024 to $13.9 million in 2025[211] - Stock-based compensation decreased by 24.3%, from $4.3 million in 2024 to $3.3 million in 2025[211] Legal and Regulatory Matters - The Company is involved in ongoing legal proceedings related to patent infringement and legal malpractice, impacting its financial and operational strategies[156][157] - The Company filed a civil lawsuit against Acebright for infringement of the '789 patent, seeking a judgment to enjoin Acebright's offer for sale of a generic version of NERLYNX[161] - The Company has appealed CNIPA's decisions regarding Acebright's ANDA, which lifted the stay on Acebright's application to market a generic version of NERLYNX[160] Stock and Compensation - The Company issued 55,882 and 64,118 shares of common stock upon exercise of stock options during the nine months ended September 30, 2025 and 2024, respectively[137] - The total stock-based compensation expense for the nine months ended September 30, 2025 was $5.327 million, compared to $6.493 million for the same period in 2024[144] - As of September 30, 2025, the total estimated unrecognized employee compensation cost related to non-vested RSUs was approximately $3.8 million, expected to be recognized over a weighted-average period of 1.3 years[147]

Puma Biotechnology Earnings Call Commercial Update Puma's Pharmacy and Distributor Network Copyright 2025 Puma Biotechnology 3 November 6, 2025 Forward-Looking Safe-Harbor Statement This presentation contains forward-looking statements, including statements regarding commercialization of NERLYNX® and the potential indications and development of our drug candidates. All forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from the anticipated res ...