NEW YORK - TG Therapeutics, Inc. (NASDAQ: NASDAQ:TGTX) has secured a national contract with the Department of Veterans Affairs (VA) to include its drug BRIUMVI® (ublituximab-xiiy) on the VA National Formulary as the preferred Anti-CD20 Antibody treatment for veterans with relapsing forms of multiple sclerosis (RMS).
This contract, effective from June 17, 2024, to June 16, 2025, with the possibility of four additional one-year options, emphasizes the government's confidence in BRIUMVI's benefits, which include a convenient one-hour infusion twice a year after the initial dose.
The agreement stipulates that BRIUMVI will be the required medication for new patient starts unless there are clinical contraindications. Existing patients may also be transitioned to BRIUMVI at their doctor's discretion. The potential value of the contract could reach approximately $186.8 million, assuming all VA-treated MS patients receive BRIUMVI annually over five years at the agreed contract price.
BRIUMVI is a novel monoclonal antibody therapy designed for efficient B-cell depletion in RMS patients. The medication has been glycoengineered to eliminate certain sugar molecules, allowing for low-dose effectiveness. Its indication covers adults with various relapsing forms of MS, including clinically isolated syndrome, relapsing-remitting disease, and active secondary progressive disease.
The press release also details important safety information for BRIUMVI, including contraindications in patients with active Hepatitis B Virus infection or a history of life-threatening infusion reactions to the medication. It outlines potential risks such as infusion reactions, serious infections, HBV reactivation, and Progressive Multifocal Leukoencephalopathy (PML).
Additionally, it advises on vaccination timing about BRIUMVI treatment and highlights the need for monitoring immunoglobulin levels during therapy.
The FDA, as well as European and UK regulatory bodies, have approved BRIUMVI for RMS treatment.
This news is based on a press release statement from TG Therapeutics, Inc.
InvestingPro Insights
As TG Therapeutics, Inc. (NASDAQ: TGTX) garners a significant contract with the VA for its BRIUMVI treatment, investors and analysts are closely monitoring the company's financial health and stock performance. With a market capitalization of approximately $2 billion and a remarkable revenue growth rate of 8290.02% in the last twelve months as of Q4 2023, TGTX is showing signs of aggressive expansion in its sector.
InvestingPro data highlights the company's impressive gross profit margin of 93.95% in the same period, indicating a strong ability to control costs and maximize profit from its revenues. Moreover, the company's operating income margin stood at 8.83%, reflecting sound operational efficiency.
An InvestingPro Tip points out that TGTX is trading at a high P/E ratio of 157.9, which suggests investors are willing to pay a premium for the company's earnings potential. Additionally, analysts have revised their earnings upwards for the upcoming period, reflecting optimism about the company's future performance. For investors seeking to delve deeper into TGTX's financial metrics and stock analysis, more InvestingPro Tips are available, with a total count of 16 additional tips listed on InvestingPro. To access these insights, visit https://www.investing.com/pro/TGTX and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Despite recent price volatility, with a six-month total return of 102.05%, TGTX may be capturing investor interest. Analysts are closely watching the stock, which is in oversold territory according to the RSI indicator, potentially signaling a buying opportunity for those who believe in the company's long-term prospects.
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