BST Trade Alert – May 20, 2015
Recommendation:
Buy Progenics Pharmaceuticals $NASD: PGNX up to $6.00 per share.
About the Company:
Progenics’ goal is to become a preeminent oncology company focused on developing innovative drugs to improve the lives of prostate cancer patients.
Their pipeline includes therapeutic and diagnostic candidates in pre-clinical through late-stage development. They have one treatment, RELISTOR, that is approved in the US and 50 other countries.
They acquired Molecular Insight in 2013 in order to focus on radiopharmaceutical therapeutics and diagnostic imaging agents. This allows them to pursue a unique approach to targeting, tracking, and treating cancer.
They use a strategy of acquiring companies and developing product candidates in order to expand and complement their prostate cancer treatments.
Anything outside of this core focus is out-licensed or partnered with motivated drug developers.
This is a clinical stage company with little revenue. They have $108 million in cash, enough to fund operations for at least 24 months.
About the Drug:
PGNX has several treatments in clinical trials and one that’s already approved by the FDA and in 50 other countries.
They recently received a positive CHMP opinion for subcutaneous RELISTOR. And they will be filing a US NDA for the oral version of RELISTOR.
They also have an important Phase 2b trial for Azedra. It is progressing as expected, and remains on track to complete enrollment by year-end.
They are also finalizing the protocol for a Phase 3 1404 imaging trial and evaluating opportunities to advance PSMA ADC following the completion of a successful Phase 2 trial.
About the Market for This Drug:
Prostate cancer is the 2nd most common form of cancer in American men behind skin cancer. According to cancer.org, 220,800 new cases of prostate cancer will be diagnosed in 2015 and 27,540 men will die from it.
1 in 7 men will be diagnosed with prostate cancer in their lifetime.
About the Potential Catalyst:
There are several potential catalysts for PGNX.
It’s always good to see the company has successfully navigated the FDA gauntlet and received an approval for one of their treatments. So we know PGNX has a history of getting their treatments approved.
Positive data from any of the six ongoing clinical trials will be a positive catalyst for PGNX.
About the Shares:
PGNX is currently trading for $5.47. The stock is up 63.4% from the 52-week low. And it’s currently 31.0% below the 52-week high.
The stock has been moving higher in an upward trending price channel since late 2013. The recent broad based pullback in biotech stocks is a great opportunity to pick of shares of this promising drug developer at a good price.
Key Facts:
Company: Progenics Pharmaceuticals
Ticker: PGNX
Recent Price: $5.47
Market Cap: $375 million
Average Daily Volume: 969K shares
Chart:
Category: BST Trade Alert
