Continue Reading Below
Shares of TG Therapeutics Inc. (NASDAQ: TGTX) gained 14.4% in July, according to data from S&P Global Market Intelligence, despite a lack of positive announcements. It doesn't take much to move a clinical-stage biotech stocks by double-digit percentages, and I'd wager investors digesting developments that took place during the previous month played a role in this price bump.
In June, TG Therapeutics announced positive results from a pivotal trial with its lead drug candidate plus Imbruvica for the treatment of high-risk chronic lymphocytic leukemia. Adding ublituximab to the star blood-cancer therapy from AbbVie and Johnson & Johnson led to a 78% objective response rate, and drove the disease into complete remission for 7% of patients. None of the patients given Imbruvica plus a placebo experienced a complete remission and just 45% achieved an objective response.
TG Therapeutics also announced impressive results from an early-stage trial testing a three-drug cocktail containing two of its new drug candidates and a well-known chemotherapy among patients with a variety of hard to treat blood cancers. All four patients with relapsed diffuse large B-Cell lymphoma patients showed an objective response to treatment with ublituximab, TGR-1202, and bendamustine, and the triple-threat combo sent two of the patients' disease into complete remission.
Continue Reading Below
Among a recent deluge of new blood cancer drugs, TG Therapeutics' candidates have largely been overlooked. Similarly high complete response rates across a variety of patients with difficult to treat malignancies in the three-way combination study suggests TG Therapeutics is on to something big.
Based on the phase 3 success reported in June, odds are strong that an FDA application for ublituximab in combination with Imbruvica will earn a green light. Management thinks such an approval could lead to between $200 and $500 million in peak annual sales, which would push the shares well above recent prices.
Racking up approvals for ublituximab in combination with TGR-1202 further ahead could eventually lead to a few billion in annual sales for TG Therapeutics. It's still a long way out, and cancer drug development is anything but certain, but this stock has multibagger written all over it.
10 stocks we like better than TG Therapeutics
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and TG Therapeutics wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 1, 2017