(Newswire.net — July 23, 2014) — On July 22nd, Parsimony Limited, on behalf of its members and as the execution arm of Global Custodian Solutions, completed substantial buys of Puma Biotechnology (PBYI) stock. In keeping with its strategy of finding high-potential assets in large growth sectors with sound research and safe strategy, Parsimony Limited executed these buys on behalf of their clients, acting as the principal on the transaction, in the interest of outstanding returns.
As an emerging biotech company, Puma Biotechnology focuses on the acquisition of in-development pharmaceuticals and compounds for the treatment of various forms of cancer that it can then develop and bring to market. The company focuses on acquiring licenses to drug candidates that are already in the clinical testing process or have recently successfully completed it–thereby limiting research and development costs. After a positive reception to its approach presented at numerous healthcare conferences throughout 2011 and 2012, the company announced an offering of common stock of $120 million, which was then increased to $138 million. This sale provided a strong base of investment going forward which will enable Puma to not only develop its existing pipeline, but to also bolster its offerings with the acquisition of additional products.
Showing Promise
Puma’s most notable in-development pharmaceutical, Neratinib, was licensed from Pfizer in 2011. Currently in early trial phases, this offering has shown incredible potential in treating early-stage HER2-positive breast cancer in conjunction with other standard treatments. Most recently at the 2014 ASCO Annual Meeting held on June 1, Puma announced that Neratinib (under the designated name PB272) had shown promising results in its Phase II trials, specifically relating to the treatment of breast cancer that has metastasized to the brain. The study showed that treatment with Neratinib led to a higher number of partial response or stable disease results than existing treatments that the test subjects had previously used, with limited side effects. These findings indicate strong progress and have implications for not only breast cancer metastases but also various other forms of cancer that may metastasize to the brain.
Although Puma reported a net loss of $0.67 per share in its first quarter earning statement, this promising development could quickly turn things around. In addition to the rapidly progressing trials of Neratinib, Puma’s notable first quarter accomplishments also included the aforementioned public offering, as well as the important securing of intellectual property rights to several drugs that were under patent opposition proceedings in Europe. The successful outcome of these proceedings means that Puma’s patent claims to other treatments can move forward, creating more opportunities to bring important drugs to market.
Seizing an Opportunity
Having a long track record of delivering outstanding returns to its members by pinpointing opportunities in the pharma and biotech spaces, Parsimony Limited was impressed by Puma’s progress. In addition to the promise of Neratinib, its financial structure and cost-minimizing strategy–one which has been executed to great effect by numerous other similarly-capped biotech firms–make a highly compelling argument for its stock as a potential high-ROI asset. Parsimony feels that at its current price the stock is significantly undervalued. In order to seize the opportunity while the stock is priced optimally, Parsimony Limited has executed heavy buys of PBYI, acting as the principal on the trades, on our clients behalf.
About Parsimony Limited
Parsimony Limited is an investment advisory and brokerage firm operating out of the Channel Islands in the United Kingdom. Known worldwide for our expertise in direct client advisement and brokerage services, our specialty is seeking out high-potential assets while tempering this approach with sound strategy. Parsimony Limited works closely with our affiliate Global Custodian Solutions, a worldwide leader in custodian services customized to the specific financial needs of the most discerning of investors. By acting as advisor, broker, and principal, Parsimony Limited advises their clients on an optimal investment strategy while executing trades on their behalf.