Russell Reconstitution to Reap Rewards for TG Therapeutics

Written by GSCR Staff   
Wednesday, 22 June 2016 06:49

In Monday’s Goldman Guide we alluded to the Russell 2000 annual reconstitution occurring this month. The new stocks that make the list are great potential buys as the universe of mutual funds and ETF have to be updated to track the index. We will look again at our healthcare and biotech small cap sector.

TG Therapeutics, Inc. (NASDAQ – TGTX - $6.69) first appeared in the Market Monitor at $5.10 and climbed to $18.70 in July of 2015 before what is now a precipitous decline to the current level. Below is the one-year chart that illustrates this drop in price level. However, we are still up 31% since our initial highlight of the stock.

TGTX 1-Year Chart

(Source: www.otcmarkets.com)

MM.06.22.16.TGTX-1yr

TG Therapeutics is a biopharmaceutical company focused on the acquisition, development and commercialization of novel treatments for B-cell malignancies and autoimmune diseases. Currently, the Company is developing two therapies targeting hematological malignancies and autoimmune diseases. TG-1101 (ublituximab) is a novel, glycoengineered monoclonal antibody that targets a specific and unique epitope on the CD20 antigen found on mature B-lymphocytes. TG Therapeutics is also developing TGR-1202, an orally available PI3K delta inhibitor. The delta isoform of PI3K is strongly expressed in cells of hematopoietic origin and is believed to be important in the proliferation and survival of Blymphocytes. Both TG-1101 and TGR-1202 are in clinical development for patients with hematologic malignancies, with TG-1101 recently entering clinical development for autoimmune disorders. The Company also has pre-clinical programs to develop IRAK4 inhibitors, BET inhibitors, and anti-PD-L1 and anti-GITR antibodies.

 

Obviously, making the Russell 2000 list is the major reason to either hold on to or buy in to TGTX right now. Additionally, the Company is establishing a solid track record on deal flow and pipeline progress. Two weeks ago the Company announced data from the TGR-1202 at the Phase 3 dose of 800 mg plus full dose ibrutinib appears safe, well-tolerated and produced high response rates, especially in patients with advanced CLL (Chronic Lymphocytic Leukemia), including one complete response, a depth of response not generally observed with either agent alone. Last month the Company announced, as part of a broader agreement with Jubilant Biosys, an Indian biotech company, it struck a sub-license deal with Checkpoint Therapeutics, Inc. to develop and commercialize Jubilant's novel BET inhibitor program in the field of hematological malignancies. TG Therapeutics indicated that Checkpoint would develop, as well as commercialize these small molecule inhibitors in solid tumors. The Company added that the BET inhibitor program was the subject of an exclusive, worldwide license agreement. As a result, Checkpoint in-licensed from Jubilant a family of patents covered compounds that inhibit BRD4, a member of the BET (Bromodomain and Extra Terminal) domain for cancer treatment.

The Company is managing debt and cash levels efficiently. As of the end of Q1 2016 TG Therapeutics had $58.7 million cash on hand versus only $153,000 of debt. We think TGTX rises on news ‘pops’ and Russell 2000 buying to the $10 level by the end of 2016.

Have a great day!

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