The Biotech Forum 3 Small Biotechs After Pullback | Page 3

Name: Progenics Pharmaceuticals (PGNX)
Market Cap: $390 million
Stock Price: $5.60 a share
52-week high: $8.37
Median Analyst Price Target: $10.33 a share
Cash On Hand: ~$120 million

Primary Drug: Relistor. This is a gastrointestinal targeted compound that does nearly $17 million in gross sales a quarter currently. It is marketed by Valeant Pharmaceuticals (VRX). Progenics gets a royalty rate of 15% to 19% of gross revenues depending on the volume of overall sales. The company is also eligible for another $200 million in sales milestones as well. The oral version of relistor was approved by the FDA on July 19th. This should at least triple sales as drug was on only available in injectable form until approval. With the recent decline, the stock is selling at the same levels as before oral relistor was approved.

Other Factors: Azedra, which is a late stage drug candidate being developed for the treatment of malignant pheochromocytoma and paragangliom, looks likes it is on its way to approval and could be on the market by late 2017. One analyst has estimated $300 million in annual peak sales for this compound. Valeant is also rumored to be “shopping” the rights to relistor if it can get the right price to help service its large debt load. If successful, this could remove the Valeant “overhang” on the stock.