TG Therapeutics stock surged Tuesday after the drugmaker unexpectedly reported a second-quarter profit, thanks to significantly lower research and development expenses.
The biotech company also reported better-than-expected sales for its bread-and-butter product, a treatment for multiple sclerosis called Briumvi. TG's hiked guidance for the year looks "easily achievable," Evercore ISI analyst Michael DiFiore said in a report.
TG Therapeutics stock rocketed 19.6% to close at 20.58. That helped reverse a recent downtrend that saw shares fall almost 26% after a failed breakout on July 17, according to MarketSurge. TG Therapeutics stock retook its 50-day line at the open.
TG Therapeutics Stock: Briumvi Guidance Raised
Briumvi generated $72.6 million in June-quarter sales, handily beating expectations for $65.9 million, according to FactSet. Sales grew more than 350%. It's important to note the MS drug launched in January 2023, so the second quarter of 2023 would have been early in the launch.
TG Therapeutics also reported a 4-cent gain per share, reversing from a year-earlier loss of 34 cents and crushing forecasts for a 5-cent loss per share. DiFiore noted R&D costs came in 34% below expectations due to decreases in clinical trial spending and license milestones. That led to earnings that smashed views by 157%, he said.
He has an outperform rating and 40 price target on TG Therapeutics stock.
The company also raised its outlook for the year and now expects Briumvi to bring in $290 million to $300 million in full-year U.S. sales. Previously, TG expected $270 million to $290 million.
"Achieving fiscal year 2024 sales guidance seems easily achievable given current trends and considering the typical summer seasonality common to MS therapies," DiFiore said. "TG Therapeutics would only need to do about $86 million each in the third and fourth quarter."
TG Therapeutics stock has a strong IBD Digital Relative Strength Rating of 94, putting its 12-month performance in the top 6% of all stocks.
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