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TG Therapeutics (TGTX) provides mixed outlook, updates pipeline for 2024

AInvestWednesday, Jan 10, 2024 10:11 am ET
2min read

TG Therapeutics (TGTX), a biopharmaceutical company, recently released its earnings report for the fourth quarter of 2023 and issued guidance for the upcoming quarters. The company's flagship product, BRIUMVI, a novel monoclonal antibody targeting CD20-expressing B-cells, has shown significant potential in the treatment of autoimmune disorders, specifically relapsing forms of multiple sclerosis (RMS). The company provided guidance for the fourth quarter (Q4) of December, along with guidance for the upcoming Q1 and fiscal year 2024 (FY24). While the company's Q4 revenue projection exceeded market expectations, its Q1 revenue guidance fell short. 


TG Therapeutics also highlighted its development pipeline milestones for 2024, which holds promising potential for its novel monoclonal antibody, BRIUMVI, targeting autoimmune diseases. 


Upside Guidance for Q4, Downside Guidance for Q1


TG Therapeutics expects Q4 revenues of approximately $40 million, surpassing the consensus of $35.74 million. This positive outlook for Q4 portrays the company's strong performance during the quarter


However, the company's revenue guidance for Q1 indicates a range of $41-46 million, falling short of the Street expectations of $49.07 million. TGTX needs to address the factors contributing to the expected decline in revenue for Q1.


FY24 Revenue Guidance and Financial Outlook: 


For FY24, TG Therapeutics issued in -line guidance, estimating revenues between $220 million and $260 million, which places the midpoint in line with expectations. This guidance signifies the company's confidence in its pipeline products and potential market acceptance. 


TGTX anticipates a year-end 2023 cash position of approximately $215 million, which provides a solid financial foundation for upcoming endeavors. 


Development Pipeline Milestones: 


TG Therapeutics outlined its anticipated milestones for the development pipeline in 2024, emphasizing its commitment to advancing novel therapies targeting autoimmune diseases. Some notable milestones for the upcoming year include the commencement of clinical development for subcutaneous BRIUMVI, trials evaluating BRIUMVI in autoimmune diseases beyond Multiple Sclerosis, and trials evaluating azer-cel in autoimmune disease. Furthermore, the company plans to present data from the ENHANCE Phase 3b CD20 switch trial at multiple conferences throughout the year. 


BRIUMVI and the Market Potential: BRIUMVI, TG Therapeutics' novel monoclonal antibody, specifically targets a unique epitope on CD20-expressing B-cells. Notably, monoclonal antibodies targeting CD20 have proven effective in managing autoimmune disorders like relapsing forms of multiple sclerosis. With BRIUMVI showing promise in clinical trials, the company aims for significant growth in net product revenue. 


TG Therapeutics expects BRIUMVI US net product revenue to reach approximately $40 million and $89 million for Q4 2023 and the full year 2023, respectively. For FY24, the company projects BRIUMVI USnet product revenue between $41 million and $46 million, further demonstrating confidence in the product's market potential.


Price Action:


Shares of TGTX have been on a tear. The stock traded at $6.98 om November 2. It has rallied 228% over the past two months. The stock is stretching above its 200-weekly moving average ($21). Biotech has been white hot as a steady run of M&A activity has attracted investors. TGTX recently constructed a sturdy base at the $17-19 area. This breakout should attract momentum buyers so we see further short-term upside to shares. 


Conclusion: 


Investors considering TG Therapeutics as an investment opportunity should evaluate the company's progress in developing its pipeline, its ability to generate revenue from BRIUMVI, and the potential market demand for its products. The upcoming clinical trials and data presentations, as well as the anticipated milestones, could significantly impact the company's stock performance in the near term.


Overall, TG Therapeutics' earnings report and updated guidance provide insight into the company's commercial outlook and growth potential. Investors should keep an eye on the company's progress in developing its pipeline and generating revenue from BRIUMVI, as these factors will play a crucial role in determining the stock's investment potential.


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