TG Therapeutics Stock Plunges 7.48% with Trading Volume Ranking 466th Amid Earnings Miss

On May 6, 2025, TG Therapeutics (TGTX) experienced a significant decline, with its stock price dropping by 7.48% and its trading volume falling by 58.56% to 1.90 billion, ranking 466th in the day's market activity.

The primary driver behind the stock's decline was a substantial miss in earnings for the first quarter of 2025. Despite a 93% year-over-year increase in revenue to $120.86 million, driven largely by its multiple sclerosis (MS) drug Briumvi, the company reported an earnings per share (EPS) of $0.03, far below the consensus estimate of $0.16. This discrepancy highlighted a widening gap between revenue growth and expense management, with operating expenses surging to $82 million, including a 42% year-over-year increase in R&D costs and a 45% increase in SG&A expenses.

Investors were particularly concerned about the company's operating margin, which narrowed to -36% in Q1 2025 from -25% in the same period last year. This suggests that scaling Briumvi may require sustained investment, which could impact profitability in the near term. Additionally, the launch of Roche's Zepollo, a cheaper biosimilar of OCREVUS, poses a competitive threat that could further erode margins over time.

Despite these challenges, TG Therapeutics has several strengths that could support its long-term prospects. Briumvi's five-year clinical data showed impressive results, with 92% of patients remaining free of disability progression and an annualized relapse rate of just 0.02. The company also raised its full-year U.S. revenue guidance to $560 million and global revenue to $575 million, signaling confidence in market adoption. Briumvi's 25% share of the IV anti-CD20 MS therapy market continues to grow, outpacing rivals like Roche’s OCREVUS, and its 30-minute infusion time and simplified dosing position it as a patient-friendly alternative.

However, the company's pipeline risk and the volatility of the biotech market remain concerns for investors. While Briumvi's subcutaneous formulation and myasthenia gravis trials are promising, these programs are still in early stages. Investors may be hesitant to bet on unproven assets in a volatile market, and the stock's beta of 2.14 amplifies its volatility, making it a riskier investment compared to companies with clearer profit paths.

In conclusion, TG Therapeutics' stock plunge was justified given the EPS miss and margin concerns, but the long-term narrative hasn't unraveled. Briumvi's clinical superiority and expanding commercial footprint position it as a top-tier MS therapy. However, investors must weigh whether the valuation justifies the risks of margin compression and competitive headwinds. For now, the stock's drop may be a healthy correction to overly bullish sentiment, but sustainable gains will require proof that Briumvi's sales can translate into consistent profits. Until then, this is a stock to watch, not necessarily to buy.