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Your Daily Pharma Scoop: Progenics Rallies, Merck To Partner With Eisai, Teva Upsizes Debt Offering


  • Progenics shares surged on strong Q4 Relistor sales.
  • Merck and Eisai announced a collaboration for LENVIMA.
  • Teva upsized its debt offering.

Analysis of top Seeking Alpha coverage: Progenics

Today we will discuss Progenics Pharmaceuticals (NASDAQ:PGNX), which is rallying after robust Relistor sales figures for the fourth quarter. Relistor has been out-licensed to Valeant (VRX) and Progenics gets a 15% royalty on net sales.

In the fourth quarter, Relistor sales totaled an impressive $24.6 million, indicating that Valeant is finally in a position to give it a push. Valeant's debt woes over the last two years have meant that the company has been cutting back on expenses as it looks to streamline operations. But in the past year, the company has managed to pay down significant portion of its debt and there are signs of growth coming back. This is good news for Progenics and is also highlighted by Q4 Relistor sales numbers, which were a record. If the revenue run rate can be maintained this year, Relistor sales would reach $100 million.

Relistor though is just a bonus. The real value lies in PGNX's pipeline as we have noted before and an important catalyst with regards to this is coming up. The FDA will take a decision on the Azedra NDA and as we have said before, the trial met the requirement under the Special Protocol Assessment (SPA), which means that there is a strong chance of approva.

If Azedra is approved, we see another 40%-50% upside in PGNX from current levels. We believe that it would also be prudent to take some profit currently on offer, especially if PGNX shares were picked up at February lows.

Stocks in News: Analysis of MRK

Merck (MRK) has signed a collaboration agreement with Eisai Co. to co-develop and co-commercialize LENVIMA (lenvatinib mesylate), an orally available tyrosine kinase inhibitor, as monotherapy and in combination with KEYTRUDA (pembrolizumab).

Analysis: Under the terms of the agreement, Eisai will

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