Summary
On July 30th, the FDA gave the green-light to Azedra, the company’s radiotherapy product designed to treat a pair of rare and lethal adrenal gland cancers.
Azedra is now the first FDA-approved treatment for pheo and para, opening a small but extremely lucrative ultra-orphan disease market.
The next earnings call should be an exciting affair; look to details of the commercialization strategy, which should begin in earnest.
Depending on the price action in the next few days, there may still be time for investors to get in before all the good news is priced in.
At long last, Progenics (PGNX) bulls’ dreams have been realized. On July 30th, the FDA gave the green-light to Azedra, the company’s radiotherapy product designed to treat pheochromocytoma or paraganglioma, a pair of rare and lethal adrenal gland cancers. Azedra is now the first FDA-approved treatment for pheo and para, opening a small but extremely lucrative, ultra-orphan disease market.
The announcement came shortly before markets closed, sending the share price up 8.5% to $8.31 before trading was halted. The halt was maintained through the close, so the true price reaction will not happen until tomorrow. Considering that Progenics was trading at $8.36 in March when Cantor Fitzgerald announced a price target of $15, there should be healthy room to run. And with no red flags in the FDA’s statement, execution should get underway rapidly.
