TG Therapeutics' new multiple sclerosis drug, Briumvi, experienced a "solid jump" in March sales, according to a report that sent TGTX stock flying on Monday and into a breakout Tuesday.
In the second month following Briumvi's launch, the MS treatment generated $3.3 million in sales, Cantor Fitzgerald analyst Prakhar Agrawal wrote in a note to clients Sunday. That compares with $500,000 in sales during February, he said, citing Symphony Health data.
Overall, first-quarter sales were about $4 million, above forecasts for $2.5 million to $3.8 million, Agrawal said. TGTX stock analysts polled by FactSet predict $3.8 million in sales.
"We estimate that Briumvi is likely to meet/exceed the current first-quarter consensus revenue estimates," Agrawal said.
On today's stock market, TGTX stock rocketed 15.4% to close at 21.93 following a 22.8% surge on Monday. That pushed shares above a buy point at 19.69 out of a consolidation, according to MarketSmith.com.
TGTX Stock: Briumvi Sales Likely To Beat
Investors have been nervous that Briumvi would miss first-quarter expectations following sales that came in below forecasts for February, Agrawal said.
"But after the jump in March sales, this should no longer be a concern," he said.
It's still early days for Briumvi, he said. The MS treatment still doesn't have a permanent code for insurance billing purposes. It should have that code in July. Therefore, sales in the second half of the year will be more important for assessing the overall trajectory for Briumvi, he said.
"Investor focus during the initial period seems to be more on the feedback from neurologists regarding Briumvi use which, based on our recent physician checks, is very positive and bodes well for the rest of the year," he said.
Agrawal has an overweight rating and 24 price target on TGTX stock.
Drug Class Is Growing
Briumvi belongs to a class of drugs that block CD20, a protein found on white blood cells. This has been important in treating some neurological diseases like multiple sclerosis. Rivals include Biogen and Roche's Ocrevus, and Kesimpta from Novartis.
It's important to note, the label for Ocrevus warns against an increased risk of breast cancer. Briumvi and Kesimpta aren't associated with the same risk.
Cantor's Agrawal says the anti-CD20 drug class is growing. Ocrevus is in its sixth year after launch and sales in the first quarter are on track for $1.4 billion, up about 16% year over year. Kesimpta sales appear to have surged more than 95% vs. the year-earlier period to $390 million, he said.
"Net-net: the anti-CD20 class in the U.S. continues to grow significantly and should also benefit Briumvi," he said.
The Briumvi sales projection sent TGTX stock above its 50-day moving average. Bullishly, shares have a best-possible Relative Strength Rating of 99. This puts them in the top 1% of all stocks when it comes to 12-month performance, according to IBD Digital.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
