Puma Biotechnology expands deal with Pierre Fabre to include additional countries

USA-based Puma Biotechnology (Nasdaq: PBYI) and privately-held French drugmaker Pierre Fabre have agreed to extend the terms of the license agreement in which Puma granted Pierre Fabre exclusive rights to develop and commercialize Nerlynx (neratinib) within Europe and part of Africa. The amended agreement extends Pierre Fabre’s commercial rights for Nerlynx to the Middle East, South Africa, Sudan and Turkey.

Under the terms of the agreement, Puma will receive an upfront payment of $4 million, as well as additional regulatory and sales-based milestone payments totaling up to $3 million. Net sales of Nerlynx from the countries in this extension territory will be included in the calculation of payments related to sales milestones and royalties from the original license agreement signed earlier this year.

Shares of Puma Biotech were up 13.1% following the news on Monday. However, the stock has plunged 47.3% so far this year against the industry’s rise of 5.3%, noted Zacks Equity Research analysts.

Breast cancer treatment Nerlynx is the only approved product in Puma Biotech’s portfolio right now. The drug generated sales of $152.9 million in the first nine months of 2019, reflecting a 9.7% increase year over year. The license amendment should boost the drug’s commercial potential, the analysts suggest.

“The expansion of our license agreement with Pierre Fabre is indicative of our belief in their robust commercial infrastructure across these additional territories,” said Alan Auerbach, chief executive and president of Puma. “Puma remains committed to providing access to Nerlynx to patients around the world. By expanding Pierre Fabre’s commercial territory, we believe HER-2 positive breast cancer patients in these territories will have access to this much-needed therapy,” he added.

“We are pleased to confirm this expanded partnership with Puma Biotechnology,” stated Jean-Luc Lowinski, CEO of Pierre Fabre Pharmaceuticals. “It will bring Nerlynx to patients seeking adjuvant treatment options for breast cancer in these new countries where Pierre Fabre is committed to making a difference in the long term,” he noted.