After Digging Through Hundreds of Charts, This Biopharma Name Stands Out
It's hard to find good charts that are not extended right now, but this biopharmaceutical firm looks promising.
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Positive momentum continues on Monday morning, with breadth running better than two-to-one positive.
Apple AAPL is lagging a little, and there aren't many big percentage movers to the upside, but the mood is positive, and there isn't any new catalyst to trigger selling.
The biggest obstacle right now is finding good charts that are not extended. I dug through hundreds of charts this weekend, and the best one I could find is TG Therapeutics TGTX. I'm sure some technicians might disagree with my view, but chart reading is more of an art than a science, and I like the looks of this chart.
TG Therapeutics is a commercial-stage biopharmaceutical firm that treats autoimmune diseases, cancers and other B-cell diseases. The company has received approval from the FDA for Briumvi, which treats patients with relapsing forms of multiple sclerosis. The drug is also approved in the EU and U.K. to treat certain autoimmune disorders.
Briumvi has had very strong sales since its launch, with over 350% revenue growth over last year in the U.S. in Q2. There were 5,850 new patient prescriptions, which substantially exceeded management's expectations. The company has raised its FY24 product revenue target to $290 million to $300 million from $270 million to $290 million.
The strong sales have enabled the company to enter into a new $250 million credit facility, which will be used for a share repurchase program and to pay down its current debt. Briumvi has patent protection through 2042.
The company mentioned in its conference call that it has around 15% market share, which is a quick increase of 5%. The company is exploring other drug delivery methods and new indications for Briumvi and is also expanding its pipeline.
In the second quarter, sales were $73.5 million versus $16.1 million last year. Analysts expect EPS to grow to $0.75 in 2025 from $0.5 in 2024, but after a solid beat in the third quarter, there could be more upside to the numbers.
Technically, the chart looks very strong as it tests overhead resistance at $22.50 as a cup-on-cup pattern forms. The stock is on the screens of momentum investors and is an IBD50 name with 97 R.S. rank. B+ accumulation and an EPS rank of 74.
There are some other good actions in biotechnology. I'm also watching Sensus SRTS and Solid BioSciences SLDB.
This market is going to take a rest pretty soon, so make sure you are ready for some pullbacks.
At the time of publication, DePorre was long TGTX, SRTS and SLDB.
