Has TG Therapeutics stock bottomed out? In search of the silver lining

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The long weekend was barely long enough to Therapeutic TG (TGTX) investors. Shares fell 21% in Monday’s session after the company announced it was withdrawing Ukoniq – the TG-approved treatment for patients with marginal zone lymphoma (MZL) and follicular lymphoma (FL) repeat offender or refractory (r / r) – from the market.

The decision was made based on updated data from a phase 3 study of a combination of ublituximab and Ukoniq (umbralisib) – a combo known as U2 – indicated for the treatment of patients adults with chronic lymphocytic leukemia (CLL) and small lymphocytic lymphoma (SLL). The new data showed that taking the drug increased the risk of death, with overall survival (OS) leaning in favor of the control group rather than the treatment group. The new data set differs from the improved OS results that were presented to the FDA in February.

As a result, the company has also decided to withdraw the pending BLA/sNDA for the combination. As a result, the Oncology Drug Advisory Committee (ODAC) meeting that was scheduled to take place on April 22 will now be cancelled.

Ukoniq is the company’s only commercial product, and last year was responsible for generating virtually all of the company’s revenue.

And yet, not everyone has lost faith. B. Riley analyst Mayank Mamtani reiterated his support for TG Therapeutics stock, reminding investors that he still has a “buy” rating on the stock – and a $23 price target that implies that TGTX shares could triple in price over the next 12 months. . (See Mamtani’s track record, Click here)

“While we acknowledge the widely expected knee-jerk reaction…we remind investors of our investment thesis centered on the next target action date of 9/28/22 PDUFA for ublituximab in relapsing MS; and we consider the exit of oncology as a watershed event for what could become a blockbuster drug in ublituximab backed by a strong balance sheet. $, partially offset by a significant reduction in R&D spending over time, and therefore supportive of our call to buy the dip here,” Mamtani explained.

It remains to be seen if other analysts will update their TGTX models soon, but for now the street remains decidedly bullish; the 6 opinions are positive, which makes the consensus on this title a strong buy. Additionally, the average price target sits at $32.5, suggesting 1-year gains of 366%. (See TGTX stock forecast on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The Content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.


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