Puma Biotechnology (NASDAQ: PBYI) Plunges 21.1185% as Governance and Equity Awards Spark Skepticism

Puma Biotechnology (NASDAQ: PBYI) plunged 21.1185% in pre-market trading on November 11, 2025, marking one of the steepest drops in its recent history. The sharp decline came amid uncertainty surrounding the biopharma firm’s corporate governance and capital allocation decisions.

The company disclosed on November 5 the approval of restricted stock unit awards to two new non-executive employees under its 2017 inducement plan. The awards, covering 11,250 shares each, vest over three years with staggered tranches tied to service duration. While such equity grants are standard for attracting talent, the timing and structure raised questions about management’s focus amid ongoing clinical and commercial challenges for its key asset, NERLYNX. Analysts noted the lack of concurrent updates on drug development or partnership progress, amplifying investor skepticism.

NERLYNX’s regulatory trajectory remains a critical factor for Puma’s valuation. The HER2-targeted therapy has faced hurdles in expanding its metastatic indications, with no new trial milestones announced in the preceding quarter. Shareholders have increasingly demanded clarity on the drug’s long-term differentiation in a competitive oncology landscape. Meanwhile, the alisertib licensing deal for aurora kinase inhibition has yet to generate near-term revenue, leaving the firm reliant on NERLYNX’s performance.

The pre-market selloff reflects broader investor fatigue with biotech firms lacking diversified pipelines. Puma’s heavy reliance on a single drug, combined with limited near-term catalysts, has left the stock vulnerable to sentiment shifts. Institutional traders have trimmed positions ahead of potential Q4 earnings, exacerbating volatility.

A hypothetical strategy testing the impact of the November 5 equity grant on Puma’s stock performance could involve analyzing historical price reactions to similar inducement awards by biotech firms. A backtest over the past three years might reveal whether such events correlate with short-term underperformance or long-term stability. Given Puma’s current technical indicators—oversold RSI levels and a breakdown below key support—traders might consider a bearish bias until the company provides concrete updates on NERLYNX’s commercial growth or alisertib’s development.