Growth Stock Boosted By FDA Approval For Multiple Sclerosis Treatment
Biotech growth stock TG Therapeutics (TGTX) got FDA approval for its multiple sclerosis drug in December, setting off a strong advance that’s added 80% so far this year. You can find these outstanding leadership issues with the IBD Stock Screener.
TG Therapeutics will sell Briumvi to health care providers as an IV infusion in the treatment of relapsing forms of multiple sclerosis and active secondary progressive conditions. The one-hour infusion time is an improvement over the two-hour requirement of older drugs.
The compound contains a synthetic protein that acts like human antibodies, enhancing the immune system. It triggers a series of biological reactions, including cytotoxicity, leading to the destruction of rogue cells.
Briumvi also functions without certain sugar molecules normally expressed on the antibody. Through this process, the protein promotes more effective immunological reactions.
The FDA approval follows successful clinical trials that showed positive results and high safety levels. Multiple sclerosis patients with at least one relapse in the previous year took part in the three trials.
The antibody treatment targets a specific membrane protein on B-cells that control the receptors on the lymphocytes. Through receptors, B-cells bind proteins and stop certain functions that could be harmful. However, abnormally functioning B-cells could lead to autoimmune disorders.
Briumvi also treats symptoms associated with clinically isolated syndromes such as double vision and numbness.
TG Therapeutics has partnered with Samsung Biologics for contract development, manufacturing, and laboratory testing services.
Growth Stock Surges 80% On FDA Approval
Shares of this growth stock surged after the news and are now extended above a buy point of 9.80.
The New York-based biotech belongs to the Medical-Biomed/Biotech group, which ranks 18th among IBD’s 197 industry groups. TGTX stock has perfect 99 Relative Strength and Composite Ratings.
The biotech has been unprofitable for years, which is typical with these cash-starved operations. However, it is forecast to lose just 18 cents per share in 2023, a major improvement over 2022’s 48-cent loss. In addition, H.C. Wainwright analysts estimate 2023 sales of $46.1 million, rising to a healthy $558 million in 2028.
Mutual funds own 52% of outstanding shares. The SPDR S&P Biotech ETF (XBI) and the Vanguard Small Cap ETF (VB) also holds TGTX stock.
Please follow VRamakrishnan @IBD_VRamakrishnan for more news on growth stocks.
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