What happened

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.

So what 

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.

Hand drawing dollar signs ascending an upward sloping chart.

Image source: Getty Images.

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.

Now what

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.

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.