H.C. Wainwright Starts TG Therapeutics (TGTX) at Buy

H.C. Wainwright analyst Emily Bodnar initiates coverage on TG Therapeutics (NASDAQ: TGTX) with a Buy rating and a price target of $60.00.

The analyst comments "An MS franchise in the making; we expect Briumvi's market penetration to grow significantly in the next few years. TG Therapeutics is building a franchise in the treatment of multiple sclerosis (MS) with its anti-CD20 antibody, ublituximab (Briumvi) which is approved for relapsing-remitting MS (RRMS) since Dec 28, 2022. The anti-CD20 antibody market (or B cell market) is growing, and now makes up ~50% of the disease modifying treatment (DMT) landscape for MS, as it has been shown to be the most effective class of treatment for MS compared to less effective oral options. The B cell market is split between IV and SC options, with IV making up ~60% of the market currently, with Briumvi and Ocrevus making up the IV market, and Kesimpta approved as an SC option. The Briumvi launch has been strong with guidance of ~$570-575M in US revenue for 2025, 3 years post-launch, which we believe indicates positive execution. We see potential for Briumvi revenues to beat guidance given in 2024 revenues were $310M compared to guidance of $300-305M. Briumvi now makes up ~30% of new scripts in the IV market, and we expect this to continue to grow as Briumvi takes share from IV leader Ocrevus, which has experienced flat growth since Briumvi has entered the market. Briumvi offers a convenient 1-hour IV maintenance infusion every 6 months, compared to 2-3.5 hours for Ocrevus. The company continues to invest in improving the patient experience by evaluating more convenient dosing regimens. The ENHANCE trial (n=600) is ongoing which is evaluating 1 600 mg IV infusion on Day 1 compared to 1 150 mg IV infusion on Day 1 and a 450 mg IV infusion on Day 15, followed by a 1-hour IV infusion every 6 months. We expect this regimen to improve convenience for patients and offer an option with less commitment required to visit a HCP. In addition, a Phase 3 trial of SC Briumvi has commenced enrollment and is evaluating non-inferior exposure via AUC to IV Briumvi. We expect SC Briumvi to largely expand the market opportunity and open up treatment to patients who are looking to self-inject at home. While Ocrevus has an SC option, it still requires HCP-administration and involves a 10-minute injection. We estimate that SC Briumvi could take peak US revenues from $3.1B to $5.1B in 2038."

For an analyst ratings summary and ratings history on TG Therapeutics click here. For more ratings news on TG Therapeutics click here.

Shares of TG Therapeutics closed at $36.71 yesterday.

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