Why Progenics Pharmaceuticals, Inc. Jumped This Morning


While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Progenics Pharmaceuticals  (NASDAQ: PGNX  )  were up this morning after Needham & Company upgraded the biotechnology company to buy from hold.

So what: Along with the upgrade, analyst Chad Messer, Ph.D. planted a price target of $8 on the stock, representing about 67% worth of upside to Friday's close. While investors might be turned off by last week's bit of very bad news -- an abstract revealed the death of two patients during mid-stage trials of its experimental prostate cancer antibody-drug conjugate, PSMA-ADC -- Messer thinks that Progenics is too juicy to pass up given the positive data it presented at the American Society of Clinical Oncology GU Cancers Symposium.

Now what: According to Needham, Progenics' risk/reward trade-off is pretty attractive at this point. "Progenics presented positive data from two Phase II studies at ASCO-GU, including one from a PSMA-ADC therapeutics agent and a PSMA imaging agent," Messer noted. "We believe that these data validate the company's strategy of refocusing resources on cancer and making a big investment in the novel prostate cancer target PSMA. In particular, we believe the imaging agent could progress rapidly into Phase III testing and become a near-term value driver for PGNX shares." So while PSMA's toxicity concerns make Progenics far too risky for average investors, biotech-savvy contrarians might want to take a closer look at Needham's turnaround call. 

The top stock in 2014
There’s a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it’s one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (2) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2820583, ~/Articles/ArticleHandler.aspx, 10/25/2014 4:12:50 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement