TG Therapeutics’ Briumvi Pricing Remains An Outstanding Issue – Analyst

TG Therapeutics (NASDAQ: TGTX) shares surged Wednesday after the US Food and Drug Administration approved the company's monoclonal antibody to treat patients with relapsing forms of multiple sclerosis.

The company's shares jumped 47% on the news but closed the session just 8% above the previous day's close.

TG Therapeutics said it expects to launch the drug, named Briumvi, in the first quarter of 2023 but gave no pricing details.

Reacting to the approval, BofA analyst Alec Stranahan raised the firm's price target on TG Therapeutics to $6 from $5 but kept an Underperform rating on the stock.

The analyst told investors that he views the FDA approval of Briumvi as a positive but said the focus now shifts to commercialisation, an area where he continues to see a “bearish setup.” The analyst said in a research note that a survey of 40 multiple sclerosis doctors concluded there are “multiple hurdles ahead” for Briumvi.

However, taking a more positive tone, JPMorgan analyst Eric Joseph maintained an Overweight rating on TG Therapeutics with a $21 price target following the approval.

Joseph said that while pricing remains the outstanding question, he anticipated an initial wholesale acquisition cost in line with currently approved anti-CD20 mAb's, around $71,000 annually. The analyst added in his research memo that he continues to see current TGTX share price levels as “under-reflecting” the commercial potential of Briumvi at conservative market share assumptions, “with faster infusion times driving a compelling value proposition to both providers and patients.”

Premarket Thursday, TGTX stock is up another 8.5%.