What Will Puma Biotechnology Inc’s $700 Million Man Do Next?

Alan Auerbach, CEO, president, and chairman of Puma Biotechnology (NYSE: PBYI) , you just personally made over $700 million after your biotech suddenly soared 295% (more if you exercise all those warrants and options you have), what are you going to do now?

"You have my word that I will do what is in the best interest of the investors. And since it's public information that I am the largest shareholder of the company, I think my interests are heavily aligned with those of the other shareholders."-On Tuesday's conference call to announce the positive clinical trial results.

Good answer. But no really, what are you going to do? Sell the company? License it out? Sell it yourself? Later in the call:

"My goal is to do what is in the best interest of the investors."

I can see where not getting anywhere here.

This cat should be smiling. Source: Puma Biotechnology

Let's speculate anyway If history repeats itself, Puma Biotechnology will get sold. That's what Auerbach did with his previous company, Cougar Biotechnology.

Johnson & Johnson (NYSE: JNJ) snatched up Cougar for $970 million to get a hold of its prostate cancer drug Zytiga while the drug was still in phase 3 development. Second quarter Zytiga sales were $562 million, so the acquisition has certainly paid off for Johnson & Johnson.

Since Puma Biotechnology already has positive phase 3 data for neratinib, any suitor is going to have to pay more. A lot more.

Puma's current market cap is $7 billion. A company might be willing to pay that much, but we need to see the full data and data from clinical trials testing neratinib in other settings before we know its full potential.

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What Will Puma Biotechnology Inc's $700 Million Man Do Next?