TG Therapeutics (TGTX) rose Tuesday after the drugmaker unexpectedly reported a second-quarter profit, thanks to significantly lower research and development costs.
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The biotech also reported better-than-expected sales for its lead product, a multiple sclerosis treatment called Briumvi. TG’s increased guidance for the year appears “easily achievable,” Evercore ISI analyst Michael DiFiore said in a report.
TG Therapeutics shares rose 23.5% to 21.27, helping to reverse a recent downtrend that saw shares fall nearly 26% after a failed breakout on July 17, according to MarketSurge. TG Therapeutics shares reclaimed their 50-day line at the open.
TG Therapeutics Stock: Briumvi Guidance Raised
Briumvi generated $72.6 million in sales in the June quarter, far exceeding expectations of $65.9 million, according to FactSet. Sales grew by more than 350%. It’s important to note that the MS drug was launched in January 2023, so the second quarter of 2023 would have been early in the launch.
TG Therapeutics also reported earnings of 4 cents per share, a reversal from a loss of 34 cents a year earlier and a crushing forecast of a loss of 5 cents per share. DiFiore noted that R&D expenses came in 34% lower than expected due to declines in spending on clinical trials and licensing milestones. That led to earnings that beat expectations by 157%, he said.
He has an outperform rating and a 40 price target on TG Therapeutics shares.
The company also raised its outlook for the year, now expecting Briumvi to bring in $290 million to $300 million in full-year U.S. revenue. Previously, TG expected $270 million to $290 million.
“Meeting fiscal year 2024 sales targets appears easily achievable given current trends and the typical summer seasonality that characterizes MS therapies,” DiFiore said. “TG Therapeutics would only need to do approximately $86 million per person in the third and fourth quarters.”
TG Therapeutics stock has a strong IBD Digital Relative Strength Rating of 94, putting the company in the top 6% of all stocks with its performance over the past 12 months.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
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