TGTX - TG Therapeutics extends rally to hit 52-week high after B. Riley comments

2023-04-11 10:41:37 ET

TG Therapeutics ( NASDAQ: TGTX ) shares rallied for the second straight session on Tuesday to reach a new 52-week high after B. Riley Securities cited a rising trend in demand for the company’s newly approved multiple sclerosis therapy Briumvi.

In December, the FDA approved the anti-CD20 monoclonal antibody for certain adults with relapsing forms of multiple sclerosis (RMS).

After a survey of high-prescribing RMS physicians, the analyst Mayank Mamtani pointed to growing interest in the anti-CD20 class and increasing market share gains for Briumvi compared to rival therapies Kesimpta and Ocrevus from Novartis ( NVS ) and Roche ( OTCQX:RHHBY ), respectively.

As mentioned in a research note on Tuesday, key takeaways from the survey include expectations for anti-CD20 treated patients to rise from around 33% to ~60% within the next five years.  16% and 32% of currently-treated/ treatment-naive patients are also expected to switch to/ start on an anti-CD20 this year.

Citing the cost-effectiveness of the therapy, Mamtani expects Briumvi-treated patients to reach an average of ~10% and ~15% within the next two and five years, respectively.

Given the anti-CD20 penetration and share gains, the analyst with a Buy recommendation on THTX raises its price target to $39 from $23 per share.

Read: Seeking Alpha contributor LB Research issued a Hold rating on TG Therapeutics ( TGTX ) in March, noting the challenges in launching Briumvi at a lower cost but in a crowded market.

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