Wainwright Sees TG Therapeutics As Take-Out Target

TG Therapeutics Inc's TGTX increasingly attractive drug development pipeline could make it an acquisition target, an analyst said Monday.

Pharmacyclics, Inc. PCYC "represents the ideal suitor" for TG Therapeutics, according to H.C. Wainwright's Reni Benjamin, who launched coverage of TG with a Buy rating and $17 target.

TG changed hands recently up 3.8 percent at $11.30 per share.

The New York-based company is developing two drugs for blood-related cancers that Benjamin said could be "a block buster" in tandem or separately.

The drugs, TG-1101 and TGR-120, are in Phase I and II clinical studies. Each has shown "excellent safety" and may offer effectiveness that equals or beats products now on the market, Benjamin said.

Lymphoma and leukemia trials could report updates in the fourth quarter, "representing near-term drivers" for shareholders, Bejamin said.

Besides merger possibilities, Benjamin highlighted potential licensing deals.

AbbVie Inc.'s recent plan to acquire rights to Infinity Pharmaceuticals Inc. in a deal valued at up to $805 million "underscores the upside potential" for licensing deals, according to Benjamin.