$PGNX $VRX with Progenics Pharmaceuticals (NASDAQ
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Posted On: 05/05/2017 3:54:52 PM
$PGNX $VRX with Progenics Pharmaceuticals (NASDAQ: PGNX) finally seems to be paying off in spades. The stock has moved up some 60% so far in the month of November as investors finally appear to be recognizing the company’s value and upcoming catalysts. On July 19th, the FDA approved the oral version of its gastrointestinal compound relistor which previously had been only available in an injectable version.
Preliminary results showed this development will boost sales of relistor, which is marketed and distributed by partner Valeant Pharmaceuticals (NASDAQ: VRX) in the quarters ahead.
Third quarter gross sales of relistor went from $15.9 million to $22.1 million in the third quarter and should be even higher in the fourth quarter of 2016 when a full three months of sales of oral relistor are reflected in quarterly numbers.
This growth will also accelerate the timeline of when the company is expected to receive up to $200 million in sales milestones connected to relistor. I expect the company to receive the first $10 million of these milestones in the fourth quarter of 2017 and perhaps even in the third quarter, which will be a positive achievement.
In addition, Valeant is in talks to sell its gastrointestinal assets to Takeda for some $10 billion. If this happens, that would remove the “Valeant” overhang on Progenics. Given the need to pay down Valeant’s $30 billion debt load,
I believe this transaction might occur in the next quarter or two. Finally, Azedra is making good progress in trials and should be on the market late in 2017. This compound is wholly owned by Progenics, could deliver $300 million in peak sales according to at least one analyst and will produce a nice second income stream.
I would not be surprised if the company signs a collaboration deal to market and distribute this compound at some point over the next year.
I also would not be shocked if Progenics becomes a buyout target if Valeant is successful in selling the rights to relistor as well. Either way, I still see further upside for the stock in 2017.
It’s times like these when I truly cherish the opportunity to share my insights on the markets with you because right now we might be on the cusp of one of the fastest and biggest wealth-building opportunities of the last 10 years. But that’s only if you take action now.
Biotech has been a stinker for the last one and a half years as super-liberals Bernie Sanders and Elizabeth Warren have targeted the sector repeatedly with their attacks. In response, share prices dropped across the board to levels that were so oversold, many stocks traded for UNDER the amount of cash they had on their balance sheets.
Almost overnight the fear of price controls and regulations imposed on the sector by the government have evaporated, and we saw the biggest weekly gain in the sector in 16 years!
But this is just the beginning.
The rally in this sector could last years as the leading biotech companies solve the world’s most pressing and debilitating diseases.
I am going to ride this multi-year trend to huge profits in my own portfolio and I want you to join me too.
That’s why today, I am inviting you to join my advisory service and learn from me, an industry veteran, on how to successfully invest in this lucrative sector through my service, Biotech Gems.
You can think of it as a window into my personal portfolio and strategy. And, as a former hedge fund manager and lifelong investor,
I have a unique and valuable skillset that you can only develop after years of experience. So, will you take a 60-day test drive of Biotech Gems so you can learn from me how to invest in this sector and secure
a lifetime of profits? To find out more, click the link below.
Click here to find out more about Biotech Gems.
Positions: Long CARA, EXEL, OMER, PETX, PGNX
Preliminary results showed this development will boost sales of relistor, which is marketed and distributed by partner Valeant Pharmaceuticals (NASDAQ: VRX) in the quarters ahead.
Third quarter gross sales of relistor went from $15.9 million to $22.1 million in the third quarter and should be even higher in the fourth quarter of 2016 when a full three months of sales of oral relistor are reflected in quarterly numbers.
This growth will also accelerate the timeline of when the company is expected to receive up to $200 million in sales milestones connected to relistor. I expect the company to receive the first $10 million of these milestones in the fourth quarter of 2017 and perhaps even in the third quarter, which will be a positive achievement.
In addition, Valeant is in talks to sell its gastrointestinal assets to Takeda for some $10 billion. If this happens, that would remove the “Valeant” overhang on Progenics. Given the need to pay down Valeant’s $30 billion debt load,
I believe this transaction might occur in the next quarter or two. Finally, Azedra is making good progress in trials and should be on the market late in 2017. This compound is wholly owned by Progenics, could deliver $300 million in peak sales according to at least one analyst and will produce a nice second income stream.
I would not be surprised if the company signs a collaboration deal to market and distribute this compound at some point over the next year.
I also would not be shocked if Progenics becomes a buyout target if Valeant is successful in selling the rights to relistor as well. Either way, I still see further upside for the stock in 2017.
It’s times like these when I truly cherish the opportunity to share my insights on the markets with you because right now we might be on the cusp of one of the fastest and biggest wealth-building opportunities of the last 10 years. But that’s only if you take action now.
Biotech has been a stinker for the last one and a half years as super-liberals Bernie Sanders and Elizabeth Warren have targeted the sector repeatedly with their attacks. In response, share prices dropped across the board to levels that were so oversold, many stocks traded for UNDER the amount of cash they had on their balance sheets.
Almost overnight the fear of price controls and regulations imposed on the sector by the government have evaporated, and we saw the biggest weekly gain in the sector in 16 years!
But this is just the beginning.
The rally in this sector could last years as the leading biotech companies solve the world’s most pressing and debilitating diseases.
I am going to ride this multi-year trend to huge profits in my own portfolio and I want you to join me too.
That’s why today, I am inviting you to join my advisory service and learn from me, an industry veteran, on how to successfully invest in this lucrative sector through my service, Biotech Gems.
You can think of it as a window into my personal portfolio and strategy. And, as a former hedge fund manager and lifelong investor,
I have a unique and valuable skillset that you can only develop after years of experience. So, will you take a 60-day test drive of Biotech Gems so you can learn from me how to invest in this sector and secure
a lifetime of profits? To find out more, click the link below.
Click here to find out more about Biotech Gems.
Positions: Long CARA, EXEL, OMER, PETX, PGNX
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