Please ensure Javascript is enabled for purposes of website accessibility

Why TG Therapeutics Inc. Jumped Higher Today

By Brian Orelli, PhD - Updated Apr 25, 2017 at 7:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

An analyst initiation and upcoming data sends shares of the biotech higher.

What happened

TG Therapeutics (TGTX -1.36%) rose 15% today, after an analyst at Jefferies initiated coverage with a buy and a $23 price target.

So what

Analyst action often has an effect on company's stock price, especially in the short term, but today's move may be exacerbated by an upcoming data release at the American Academy of Neurology meeting scheduled for Friday. Investors may have been jumping in today ahead of the binary event, hoping that Friday's data will be positive enough to send the share price even higher.

Friday's presentation will go over the preliminary data for a phase 2 trial testing ublituximab, which used to go by the code name TG-1101, in patients with the relapsing forms of multiple sclerosis. In January, TG Therapeutics presented top-line data for the trial, with the drug producing a median B-cell depletion of 99%. While reducing multiple sclerosis attacks is ultimately what's important, B-cell depletion is known to be an effective treatment to fight multiple sclerosis.

TG Therapeutics has already announced plans to start a phase 3 clinical trial of ublituximab in multiple sclerosis, so it seems likely that the full data set will be just as positive as the initial top-line disclosure.

Clipboard with Diagnosis: Multiple Sclerosis written on it.

Image source: Getty Images.

Now what

While the multiple sclerosis data is imminent, TG Therapeutics' valuation this year is more likely tied to another disease.

Ublituximab is also being tested in chronic lymphocytic leukemia, which is further along, having already disclosed positive phase 3 data from a clinical trial called GENUINE. TG Therapeutics plans to meet with the FDA to discuss the possibility of using the GENUINE data for accelerated approval. Getting approved with just the one phase 3 trial would result in revenue years earlier than if it has to run another clinical trial in chronic lymphocytic leukemia.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

TG Therapeutics Stock Quote
TG Therapeutics
TGTX
$4.34 (-1.36%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.