BUY (PGNX, $9.52)
Management Meeting Takeaways - Azedra Data In Weeks, A Solid Prostate Cancer Strategy In The Making: Reiterate BUY/$12 TP
February 13, 2017
Jonathan Aschoff, Ph.D.
- Last week we hosted meetings between investors and Progenics management.
- Progenics discussed its pipeline and strategy and we present below our key takeaway points from the meetings.
- The pivotal Azedra data will come in a few weeks, and we continue to strongly believe that it is the most derisked pivotal cancer trial of which we are aware and therefore that the results will fully support an NDA filing as well as an expedited 6-month FDA review. A commercial team of of fewer than 20 is all that is required to effectively sell Azedra and we view the drug as contributing a minimum of $100M to EBITDA at peak.
- Progenics also articulated its prostate cancer strategy from Phase 3 imaging agent 1404, to Phase 3-ready imaging agent PyL, to drug prostate cancer 1095 which is about to enter the clinic. The company continues to entertain additional strategic fits.
- Progenics is well funded with proforma cash of almost $150M, and we project the company to be ccah flow positive for calendar 2018. Relistor royalties are steadily increasing and Azedra could be on the market late this year.
- A more detailed account of our key takeaway points can be found on the following pages.
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