Replies to post #179759 on Biotech Values

[ariadndndough]

Brean on tgtx

In-licenses IRAK4 Inhibitors From Ligand – Expands Liquid
Tumor Pipeline
Investment Summary
TG in-licensed exclusive global rights to Ligand’s IRAK4 inhibitor (interleukin-1 receptor associated kinase 4). Ligand will receive 125,000 unregistered common shares of TG upfront, as well as future development and sales milestones and a tiered, mid-to-high-single-digit royalty on net sales. IRAK4 is activated in tumors with MYD88 mutations, which are present in most patients with Waldenström's Macroglobulinemia and in some patients with NHL and CLL. Inhibition of IRAK4 may also treat autoimmune-related disorders, since IRAK4 is a key component of signaling pathways that regulate immune and inflammatory processes. Preclinical studies showed treatment benefit with IRAK4 inhibitor for certain B-cell malignancies. We believe IRAK4 inhibitor fits well with TG’s existing drug portfolio, and we look forward to clinical development of IRAK4 inhibitor either as a monotherapy or in combination with TG’s drug candidates.
Discussion
TG in-licensed exclusive global rights to Ligand’s IRAK4 inhibitor (interleukin-1 receptor associated kinase 4). Ligand will receive 125,000 unregistered common shares of TG upfront, as well as future development and sales milestones and a tiered, mid-to-high-single-digit royalty on net sales. IRAK4 is activated in tumors with MYD88 mutations, which are present in most patients with Waldenström's Macroglobulinemia and in some patients with NHL and CLL. Inhibition of IRAK4 may also treat autoimmune-related disorders, since IRAK4 is a key component of signaling pathways that regulate immune and inflammatory processes. Preclinical studies showed treatment benefit with IRAK4 inhibitor for certain B-cell malignancies. We believe IRAK4 inhibitor fits well with TG’s existing drug portfolio, and we look forward to clinical development of IRAK4 inhibitor either as a monotherapy or in combination with TG’s drug candidates.
Valuation / Target Price
We derive our target price of $13 through a DCF analysis, using a 40% discount rate and a 5 multiple of the terminal value for the projected 2022 EBITDA.