TG Therapeutics (NASDAQ: TGTX) stock price continued its recovery after the company published strong financial results. The shares jumped to the psychologically important level of $15, its highest point since April 23rd. They have soared by more than 130% from their lowest level in October.
TG Therapeutics earningsThe main reason why the TGTX stock is rising is that the company published strong financial results and forward guidance. In a statement, the firm said that its revenue jumped from $94 million in Q3’22 to over $165 million. This figure beat the analysts’ forecasts by over $102 million.
This revenue jumped because of a $140 million fee it received for licensing from its UK partner. Also, the figure included $25 million of its Briumvi sales in the US. As a result, the total net profit jumped to $113 million from a $35 million loss in the same quarter in 2022.
TG Therapeutics expects to continue growing its revenue in the coming years, thanks to Briumvi. Briumvi is a recently FDA-approved drug that focuses on multiple sclerosis. Patients receive the drug two times a year.
TGTX expects that its revenue will be between $33 million and $37 million in Q4. That will be an improvement from Q3, which had one-off revenues. If this happens, the company will make between $82 million and $86 million in its first partial year of sales.
The company has a strong balance sheet. It ended the quarter with over $229 million in cash and it anticipates to continue reducing its cash burn. The management expects it to become profitable in the near term.
If TG Therapeutics can become profitable, I suspect that it can become a good acquisition target. Roche, which owns Genentech, is one company that would like to acquire it. Genentech owns Ocrevus, one of the most popular drugs in the MS industry. Other companies that would want to acquire it are Biogen, which owns Tysabri, and Novartis, which makes Gilenya.
TGTX stock price forecast
The daily chart shows that the TGTX share price has staged a strong recovery in the past few weeks. This rally accelerated after the company entered a deal with a UK distribution partner. It has now crossed the key resistance point at $13.36, the lowest swing on March 9th.
The stock has also crossed the 50-day and 100-day Exponential Moving Averages (EMA) and the two are about to have a crossover. Therefore, the outlook for the TGTX share price for now is bullish, with the next point to watch being at $19.57, its lowest swing on July 28th. This price is about 22% above the current level.
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