The stock jumped 2.4 percent Wednesday to $6.86; the price target represents a 114 percent upside.
Goldstein believes the company will gain from its busy pipeline in a field where there is little consensus. Progenics works on treatments for “selected oncology markets where treatments and diagnostics intersect.”
“Consensus as to what is needed and how new agents will be adopted varies, and therein lies the opportunity,” Goldstein said in a note.
Short and Long-Term Potential
In the short term, Progenics stands to gain from Azedra, the company’s orphan drug radiopharmaceutical for the treatment of malignant pheochromocytoma and paraganglioma.
The drug’s registration program was recently completed, and the company will be applying to the FDA soon.
Goldstein expects Azedra to be approved within the next 18 months. Over the same timeframe, investors can expect updates on PyL and 1404, a prostate cancer diagnostic.
“Recent changes in the enrollment criteria for 1404 should facilitate faster enrollment in the trial, and make it more relevant in our view,” said Goldstein.
Longer term, 1404 will be launching into a market that has not seen significant developments yet, according to Goldstein.
The analyst also noted the conservative model used to assess the company. The valuation was based on risk-adjusted revenues from Progenics’ developmental candidates, which she expects to begin generating revenue in 2018.
The model also did not include PyL or royalties from Relistor.
Market share growth estimates were especially conservative, indicating a strong potential for solid long-term returns.
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Latest Ratings for PGNX
|Jul 2017||Cantor Fitzgerald||Initiates Coverage On||Overweight|
|Feb 2017||Needham||Upgrades||Buy||Strong Buy|
|Oct 2016||Aegis Capital||Initiates Coverage On||Buy|
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