Sales of TG Therapeutics‘ (TGTX) highly anticipated multiple sclerosis drug, Briumvi, missed forecasts on Tuesday and TGTX stock plummeted.
During the second quarter, Briumvi generated $16.1 million in U.S. sales. Though sales doubled quarter over quarter early in its launch, they trailed TGTX stock analysts’ expectations for $17.4 million, according to FactSet. Adjusted losses came in a penny better than expected at 25 cents a share.
The second quarter represented Briumvi’s first full quarter on the market. Briumvi is a twice-annual, one-hour infusion to treat multiple sclerosis. But it faces a new rival in the form of Roche’s Ocrevus. Roche is testing an under-the-skin injection of its drug. It would be a twice-yearly, 10-minute injection.
In midday trades on today’s stock market, TGTX stock plunged 50.8%, trading near 10.20.
TGTX Stock: A New European Deal
In addition to the quarterly report, TG announced a deal for European specialty pharmaceutical company Neuraxpharm Group to commercialize Briumvi outside the U.S. The move helps TG prepare for Briumvi’s European launch, expected within the next six months.
But TGTX stock investors might not be on board with the deal. Shares hit to their lowest point in eight months, MarketSmith.com shows. TGTX stock toppled below its 200-day moving average for the first time since December.
TG noted it has the option to buy back the rights to Briumvi under the agreement if TG is acquired. Under the terms of the deal, Neuraxpharm will pay $650 million, including more than $150 million in upfront and near-term milestones.
TGTX stock has a nearly perfect Relative Strength Rating of 98 out of a best-possible 99. This puts shares in the leading 2% of all stocks when it comes to 12-month performance, according to IBD Digital.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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