Progenics Pharmaceuticals, Inc. (NASDAQ: PGNX)
Progenix Pharmaceuticals is having an incredibly strong day in the market today, and for good reason. A key analyst weighed in on the stock with overwhelmingly positive news. The analyst believes that profitability could come relatively soon. Today, we’ll talk about the news, what we saw from the stock as a result, and what we can expect to see from PGNX ahead. So, let’s get right to it…
PGNX Gets A Boost From Needham Analyst
As mentioned above, Progenix Pharmaceuticals is having an incredibly strong day in the market today after Needham & Company analyst, Chad Messer weighed in on the stock. In a note to investors, Messer reiterated the buy rating on the stock. The note included the speculation that the company could reach profitability as early as 2017 based on three key factors…
- Relistor – First, the analyst pointed to the PGNX launch of Relistor. The analyst believes that while the price on the treatment is higher than the competition, the treatment already has broader reimbursement than it’s largest competitor, Movantik. The analyst also made it clear that this lead comes in even though Movantik had over a year as a head start.
- Azendra – Along with sales in Relistor, Messer believes that PGNX will see a huge benefit from it’s wholly owned Azedra. In fact, the analyst believes that between these two treatments, the company could reach profitability before the year end 2017.
- PSMA – Finally, Messer also pointed to the fact that Progenics Pharmaceuticals is currently developing multiple therapeutic and diagnostic agents to find, fight and follow prostate cancer. This is being done using the PSMA target. Messer believes that the company is doing good work in this area and that it could help with profitability in the long run.
Based on these three factors, Messer believes that we’re going to see strong long run growth on the stock. Considering the $11 price target he maintained on PGNX, an upside of well over 50%
What We’re Seeing From The Stock
As we know, when news is released with regard to a publicly traded company, we can expect to see movement in the market. Of course, when the news is positive, we can expect to see gains, and when the news is negative, we can expect to see declines. The news released with regard to PGNX was overwhelmingly positive. As a result, we’re seeing gains in the value of the stock today. Currently (3:11), the stock is trading at $7.05 per share after a gain of $0.28 per share or 4.14% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish expectation of what we can expect to see from Progenix Pharmaceuticals. While I never suggest blindly following the opinions of analysts, in this case, Messer makes a strong argument. If all does fall in place the right way, PGNX could indeed reach profitability as early as next year. As a result, I expect that we’re going to continue to see gains in the value of the stock ahead.
What Do You Think?
Where do you think PGNX is headed moving forward? Join the discussion in the comments below!