TG Therapeutics (TGTX), a biopharmaceutical company known for its focus on treatments for multiple sclerosis, delivered a third-quarter report on Nov. 4 that featured a notable revenue increase. Its U.S. net revenue from its sole approved treatment, Briumvi, grew by more than 230% year over year to $83.3 million. The company's total revenue for the quarter was $83.9 million, surpassing analysts' consensus estimate of $81.7 million. Despite this, the company's net income fell from $113.9 million in Q3 2023 to $3.9 million, but that difference was largely due to a large one-time royalty payment that occurred last year.
| Metric | Q3 2024 Actual | Q3 2024 Analyst Estimate | Q3 2023 Actual | % Change YOY |
|---|---|---|---|---|
| Total revenue | $83.9 million | $81.7 million | $165.8 million | (49.4%) |
| Briumvi U.S. revenue | $83.3 million | N/A | $25.1 million | 231.9% |
| Net income | $3.9 million | N/A | $113.9 million | (96.6%) |
| EPS (diluted) | $0.02 | $0.03 | $0.73 | (97.3%) |
Source: Analyst estimates for the quarter provided by FactSet.
Understanding TG Therapeutics
TG Therapeutics develops treatments for B-cell diseases, with a primary focus on multiple sclerosis. Its lead product, Briumvi, serves as the cornerstone of its commercial success.
Briumvi received FDA approval in late 2022 and launched in early 2023. Subsequent approvals in Europe have expanded its market reach. TG Therapeutics aims to ensure Briumvi's success through strategic commercialization plans and partnerships, such as one with Neuraxpharm for ex-U.S. markets.
Quarterly Insights
During the third quarter, TG Therapeutics boosted Briumvi's market penetration, driving U.S. net revenue up by over 230% year over year. This impressive growth was underscored at the 2024 European Committee for Treatment and Research in Multiple Sclerosis (ECTRIMS) conference, where updated clinical data demonstrated Briumvi's efficacy.
While its top-line growth is promising, the company reported just $3.9 million in net income, a significant decrease from the prior year. However, this decline was influenced by the absence of previous one-time payments, emphasizing its reliance on core product revenue.
Operational expenditures raised concerns, as R&D costs increased to $20.1 million from $14.8 million, largely due to further development of BRIUMVI formulations. SG&A expenses surged from $32.8 million a year ago to $42.0 million, impacted by commercialization efforts.
Strategically, TG Therapeutics reinforced its supply chain by securing Fujifilm Diosynth Biotechnologies as a secondary manufacturer. In a competitive landscape, continued investment in product innovation and strategic partnerships is vital for maintaining a competitive edge.
Future Outlook
Management raised its full-year revenue guidance for Briumvi to a range of $300 million to $305 million, reflecting its confidence in the treatment's ongoing sales strength. The company's exploration of new formulations such as a subcutaneous delivery version of Briumvi could enhance patient convenience, potentially boosting uptake.
Despite robust growth, competition from established players remains a challenge. Management plans to focus on market expansion and product differentiation, aiming for significant share gains in the multiple sclerosis market.
