Briumvi’s success story: FDA approval, market expansion, and 5,850 new prescriptions! Is TG Therapeutics your next top stock pick? 🔬

On August 6, 2024, TG Therapeutics’ stock witnessed a significant rise, fueled by several positive financial and operational developments reported in their second-quarter results. The company experienced a remarkable year-over-year revenue growth exceeding 350%, with second-quarter revenue reaching $73.5 million, surpassing consensus estimates by $7.6 million. This robust performance was primarily driven by the success of their multiple sclerosis therapy, Briumvi (ublituximab-xiiy), which generated $72.6 million in U.S. net revenue for the quarter.

Profitability and Positive Cash Flow

A notable highlight of TG Therapeutics’ Q2 results was the shift to profitability. The company reported a net income of $6.9 million, a significant turnaround from the net loss of $47.6 million in the same quarter the previous year. Additionally, TG Therapeutics became cash flowThe cash flow statement provides a detailed overview of the cash inflows and outflows of a company over a specified period of time. It includes cash received from operations, inves... More positive, further enhancing investor confidence in the company’s financial health and operational efficiency.

Raised Revenue Guidance

In light of the strong performance of Briumvi, TG Therapeutics raised its full-year U.S. net product revenue target for Briumvi to $290-$300 million, up from the previous guidance of $270-$290 million. This upward revision underscores the management’s confidence in sustained sales momentum and the therapy’s market potential.

New Credit Facility

To further strengthen its financial position, TG Therapeutics announced a new five-year credit facility worth $250 million with HealthCare Royalty and Blue Owl Capital. This facility is intended to help pay down existing debt and fund a new share buyback program worth up to $100 million, thereby boosting investor sentiment and showcasing the company’s commitment to shareholder value.

Pipeline Progress

TG Therapeutics also reported significant progress in their research and development efforts. The initiation of a Phase 1 study for subcutaneous ublituximab and FDA clearance to study azer-cel, an allogeneic “off-the-shelf” CD19 CAR-T therapy for patients with progressive multiple sclerosis, highlights the company’s ongoing commitment to innovation and expanding their therapeutic pipeline.

Key Factors Driving Briumvi’s Revenue Growth

Successful Market Launch and Uptake

Launched in January 2023, Briumvi has received positive market feedback due to its unique administration process, which requires only a one-hour infusion every six months. This convenience has made it an attractive option for patients and healthcare providers alike.

Increased Prescriptions and Market Penetration

Since its launch, Briumvi has garnered approximately 5,850 new patient prescriptions from around 950 healthcare providers at approximately 525 centers. This broad adoption across various healthcare settings has significantly contributed to its impressive revenue growth.

Regulatory Approvals and Market Expansion

Briumvi’s FDA approval in late 2022, followed by the European Commission’s approval for adult patients with relapsing forms of multiple sclerosis, has expanded its market reach and potential revenue streams. These regulatory milestones have solidified Briumvi’s position in the global market.

Competitive Advantage and Patent Protection

Briumvi benefits from strong barriers to entry and patent protection until 2042, which helps maintain its market position and supports long-term revenue growth. This competitive edge ensures sustained market dominance and financial stability.

Financial and Operational Strategies

TG Therapeutics’ strategic financial and operational measures, including the new $250 million credit facility to repay existing debt and fund a share buyback program, have bolstered investor confidence and supported overall business growth.

TGTX Technical Analysis (Daily)

For the given daily chart of TG Therapeutics (TGTX), let’s analyze the key elements and indicators:

Trend Analysis:
The stock has experienced an overall upward trend since mid-March, moving from around $14 to a peak of $22 in mid-July. However, recent price action shows a slight pullback, currently trading around $20.14. The 50-day moving average is at $18.96, providing a support level, while the 200-day moving average is at $16.12, serving as a longer-term support.

Support and Resistance Levels:
Current support levels are at $18.96 (50-day moving average) and $16.12 (200-day moving average). Resistance is likely around the recent high of $22.

Volume Analysis:
Volume spiked significantly on certain days, indicating strong buying or selling interest. Recent volume shows a mix of buying and selling, with a noticeable green volume bar on the latest day, suggesting buying pressure.

Relative Strength IndexIn the world of technical analysis, the Relative Strength Index (RSI) stands as a cornerstone tool for traders seeking insights into market momentum. Developed by J. Welles Wilder ... More (RSI):
The RSI is at 53.85, indicating a neutral stance, neither overbought nor oversold. This suggests the stock has room to move in either direction based on market conditions.

On-Balance VolumeThe On Balance Volume indicator (OBV) is a technical analysis tool used to measure the flow of money into and out of a security over a specified period of time. It is a cumulative ... More (OBV):
The OBV is at 160.55M, showing a general uptrend since mid-March, indicating accumulation. Recent flattening could suggest indecision or a potential reversal.

Stochastic RSIIn the realm of technical analysis, the Stochastic RSI (StochRSI) emerges as a powerful tool for traders seeking to navigate market dynamics with precision. Developed by Tushar S. ... More:
The Stochastic RSI is at 0.409, indicating a neutral to slightly oversold condition. There is potential for upward momentum if it crosses higher.

Chaikin OscillatorNamed after its creator Marc Chaikin, the Chaikin Oscillator stands as a formidable tool in the arsenal of technical analysts. This oscillator is designed to measure the accumulati... More:
The Chaikin Oscillator is at -798,747, indicating a bearish divergence. This could suggest weakening momentum and possible distribution.

MACDThe MACD indicator is essentially a momentum indicator that shows the relationship between two different moving averages of price. The MACD is the difference between the 12-period ... More Oscillator:
The MACD shows a bearish crossover, with the MACD line at -0.44 and the signal line at -0.98. The histogram is also negative, suggesting bearish momentum in the short term.

Time-Frame Signals:
3 Months: Hold
Given the current neutral indicators and the recent pullback, it’s prudent to hold and observe if the stock can maintain support around the 50-day moving average.

6 Months: Buy
If the stock can sustain above the 50-day moving average and shows signs of recovery with increasing volume, it may present a buying opportunity.

12 Months: Buy
Considering the overall upward trend and potential for further growth, a long-term buy is recommended, provided the stock remains above the 200-day moving average and fundamental factors support the uptrend.

TGTX Technical Analysis (Weekly)

For the given weekly chart of TG Therapeutics (TGTX), let’s analyze the key elements and indicators:

Trend Analysis:
The stock has experienced significant volatility over the past year, with a notable peak around $40 followed by a sharp decline. Recently, the stock has been recovering, moving from a low of around $10 to its current level of $20.15. The Anchored VWAP from August 1, 2023, is at $13.96, providing a key support level.

Support and Resistance Levels:
Current support is at $13.96 (Anchored VWAP). Resistance is observed near the recent high of $25.

Volume Analysis:
Volume spikes indicate significant buying and selling interest. The recent increase in volume suggests renewed buying interest, which could support the upward momentum.

On-Balance Volume (OBV):
The OBV shows a positive trend, currently at 67.92M. This indicates accumulation and suggests that buying pressure outweighs selling pressure.

Time-Frame Signals:
1 Year: Buy
Given the recent recovery and increasing volume, the stock shows potential for further gains in the next year. A sustained move above $20.15 with strong volume could confirm this trend.

2 Years: Hold
Considering the volatility and significant resistance levels, it is prudent to hold and observe how the stock performs over the next two years. Monitoring the support at $13.96 is crucial.

3 Years: Buy
In the longer term, the overall trend suggests potential for significant gains. If the stock can maintain its upward trajectory and fundamental factors remain strong, a long-term buy is recommended.

Past performance is not an indication of future results, and this article should not be considered as investment advice. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions. 🧡

Looking Ahead

The combination of strong financial performance, successful product launch, strategic financial maneuvers, and ongoing R&D progress has collectively contributed to the significant increase in TG Therapeutics’ stock price on August 6, 2024. As the company continues to build on these successes, it remains well-positioned for sustained growth and market leadership in the biopharmaceutical sector.