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.
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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.
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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%.
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