Is Celldex Therapeutics (NASDAQ:CLDX) The Next TG Therapeutics Inc (NASDAQ:TGTX) Stock

- March 7, 2017

A couple weeks ago I published a post explaining why Celldex Therapeutics Inc (NASDAQ:CLDX) could become the next Clovis Oncology. I used the following chart to explain why and how CLDX stock has fallen. I ended by saying the market is ignoring the potential and previously strong data with Glembatumab vedotin (CDX-011), a drug that is being tested in a large 300-patient trial, and has punished CLDX stock because of a failed Rintega study that had low expectations to begin with. While Clovis was a fair comparison, TG Therapeutics Inc (NASDAQ:TGTX), and what’s transpired with TGTX stock the last week, is a far better illustration of what could happen if Glembatumab vedotin (CDX-011) data is strong later this year.

Brian Nichols recently published a post explaining why the rally in TGTX stock is just getting started. He explained that Wall Street did not see positive TG-1101 data coming. And quite frankly, I agree.

For the record, TGTX stock is higher by 18% since Nichols sent his “Buy” alert via text and email to BNL Members and added 7,000 shares to the BNL Portfolio.

While TG Therapeutics stock is getting upgraded today, and investors are obviously excited about the future, its chart last week looked very similar to CLDX stock.

You can see strong gains in 2014 as excitement builds for programs like TG-1101 and its pipeline of PI13K inhibitors. This was thanks to high expectations for Infinity Pharmaceuticals (NASDAQ:INFI) PI13K inhibitor INFI-145 and the success of Pharmacyclics and its its BTK inhibitor ibrutinib. These were some of the biggest names in biotech for a few year stretch, with Infinity Pharmaceuticals peaking with a valuation over $2.3 billion and Pharmacyclics eventually acquired by AbbVie for more than $20 billion.

However, those big gains of 2014 and early 2015 did not last long. Infinity Pharmaceuticals (NASDAQ:INFI) did not meet expectations, and has since lost about all of its valuation, from $2.3 billion to $100 million. TG Therapeutics then amended a Phase 3 trial on TG-1101 called GENUINE, which made Pharmacyclics look even more like the outlier of this bunch.

What we saw this week is that early excitement for TG Therapeutics was in fact appropriate.

That said, CLDX stock trend certainly looks a lot like TGTX stock. Will it get the big pop that TGTX stock got this week, driven by strong data from Glembatumab vedotin (CDX-011)? I think it is very possible, and I don’t think it is any coincidence that other investors saw the connection, CLDX stock rose 5% on Monday. Read here to understand why.

 

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