A near-doubling of revenue and a flip into profitability on the bottom line apparently weren’t good enough for TG Therapeutics (TGTX -12.75%) shareholders on Monday.
The company, best known for its multiple sclerosis (MS) drug Briumvi, posted its first-quarter results that morning, and investors expressed their displeasure by trading out of the stock aggressively. In midafternoon action its price was down by more than 14%, comparing most unfavorably to the 0.2% dip of the S&P 500 index at that point.
Sales boost from Briumvi
TG’s revenue is comprised almost entirely of Briumvi sales, so when those sales improve so does the company’s revenue line. This amounted to just under $121 million in the biotech company’s first quarter, and was nearly double the $63.5 million it earned in the same period of 2024.
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The company’s net profit was just over $5 million, or $0.03 per share. It posted an almost $11 million loss in the first quarter of 2024.
Yet analysts were expecting far better for that particular line item. The consensus prognosticator projection was $0.16 per share, although they underestimated revenue with a $117 million collective estimate.
TG also issued an update of its pipeline in the earnings report. It has a pair of phase 1 trials of Briumvi ongoing — one for subcutaneous use of the drug on patients with relapsing MS, and the other on people suffering from muscular disorder myasthenia gravis. It is also developing a chimeric antigen receptor (CAR) T cell therapy, azercabtagene zapreleucel, that is in enrollment for a phase 1 trial.
Guidance raised
TG raised its guidance for domestic Briumvi sales for the entirety of 2025, and thus overall revenue. It expects that it will earn $560 million from U.S. sales of the drug, up from its previous projection of $525 million. Its overall top line should amount to $575 million, where its was formerly expecting $540 million.
It’s clear that, like those analysts, investors were expecting a beefier bottom line given the climbing sales of Briumvi. The company is surely on the hook to deliver them, or face future stock sell-offs.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends TG Therapeutics. The Motley Fool has a disclosure policy.
