Shares of Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX), a small-cap biotech with a several irons in the fire, are on the rise today. Despite a lack of significant news, the stock tacked on a 12.2% gain as of 1:50 p.m. EDT on Monday.
Big movements without a reason aren't at all unusual in this industry, and sometimes just a hint of progress is enough to spark a rally. Today, it looks like a meeting with a bank was enough to ignite hopes that a stalled application is making progress.
Delaying the submission of a new drug application for Azedra has been pressuring Progenics' stock price recently. Today, it looks like rumors of a meeting with a bank that underwrote a previous share offering for the company are fueling hopes the Progenics is ready to file that application soon.
The Food and Drug Administration has already agreed to grant Azedra a priority review, which means the company needs to begin assembling a sales team around the same time it expects the agency to begin reviewing the application. Progenics finished June with a $114 million cash balance, so another trip to the equity tap to fund Azedra's potential commercial launch is widely expected.
If Progenics does announce an upcoming share offering to support a possible launch for Azedra, it probably won't be a very big one. The candidate's addressable patient population is extremely small.
Despite today's run-up, Progenics stock might have a lot more room to run. Annual Azedra sales are expected to top out at around $250 million, which makes the company's recent $503 million market cap seem awfully small. On top of Azedra, the company also has a prostate cancer imaging agent in late-stage development and a drug to relieve opioid-induced constipation on pharmacy shelves. Put it all together and this looks like one of the best biotech stocks you can buy right now.