Progenics (NASDAQ:PGNX) reported Q2 EPS and incomes in front of perspectives, and it was not because of superior to anything expected Relistor sovereignties. The organization perceived a $4 million point of reference installment from Bayer (OTCPK:BAYRY) for the PSMA Antibody Technology permit. This cooperation could open some shareholder esteem in the next years. News broke a week ago that Relistor is drawing some purchaser interest and that Valeant (NYSE:VRX) may offer its rights to the most noteworthy bidder.
A $400-500 million sticker price was specified in the Bloomberg article. The inferred cost allots little esteem to Relistor considering the late endorsement of the oral adaptation. I have tempered my assumptions about Relistor’s potential in the course of the most recent couple of months, for the most part due to Valeant, as I think it doesn’t have the business capability (any longer) to drive deals higher.
Offering the rights to another built up and all the more effective organization could be the best close term impetus for Progenics. Financial specialist center will swing to Azedra towards the end of 2016, and the top line information could drive the stock essentially higher in 2017. I stay bullish on Progenics yet think Relistor won’t play out that well on the off chance that it stays in Valeant’s grasp.
The ducks are beginning to arrange for Progenics. Relistor eminences ought to quicken before the end of 2016. The organization has extended its scope with the Bayer joint effort and Azedra trial results ought to be a vital impetus for the stock in late 2016 or mid 2017. My exceptionally preservationist value focus on Progenics is $7 and suggests a humble upside from the present cost, however it just incorporates unassuming desires for Relistor and Azedra.
The mid-range and bullish case PTs taking into account Relistor and Azedra are $13 and $19.50 separately. Valeant offering its Relistor rights to another vast pharma organization could likewise be a noteworthy close term impetus for Progenics and would likely push the stock higher.
Relistor would unquestionably get more consideration at an organization that is not in a turnaround and maintain a strategic distance from chapter 11/decrease obligation mode. The previously mentioned value targets don’t consider whatever remains of the pipeline and the joint effort with Bayer, which basically speak to a free call choice for long haul financial specialists.