Turning Point Therapeutics (NASDAQ: TPTX) - American biopharmaceutical company, which focuses on the development of new drugs in the field of oncology. The company aims to overcome the key limitations of existing cancer control methods, to expand the possibilities of therapy. The issuer's shares have been listed on the Nasdaq since April 2019.
Where does the money come from
The company conducts research in the field of oncology and creates medicines to improve and expand treatment options. Current developments are targeted at patients with lung cancer and solid tumors.
Portfolio of drugs under development. The company is currently developing four main drugs:
- repotrectinib is an advanced development for use in the treatment of non-small cell lung cancer and solid tumors;
- TPX-0022 and TPX-0046 - drugs for use in the treatment of solid tumors of various origins;
- TPX-0131 - a medicine for prescribing in the treatment of progressive non-small cell lung cancer.
In addition to major developments, the company has several research programs, who in the coming years can move to clinical trials.
Stocks lost almost 70% prices in less than a year. Turning Point Therapeutics' market capitalization skyrockets in February 2021, observed since March 2020, gave way to a noticeable drop in quotations: from the maximum in the area 140 $ the share price has now dropped to 42 $. Only 7 October shares fell by 23% per day - such situations can often be observed among biotech companies, when their presentations do not meet the expectations of investors at least a little.
Hedge funds cut their positions. According to Insider Monkey's summary, in the second quarter of 2021 the number of funds, who hold TPTX shares in their portfolios, declined from a high of 33 institutional investors a quarter earlier to 28. This closing of positions is logically linked to a strong drop in the price of the issuer's shares over the same period., but at the same time does not add positive for retail investors in the market.
Long road to approval. Even the flagship drug repotrectinib is now in the middle of clinical trials and is unlikely to be approved soon.: the company plans to discuss interim drug test results with the FDA in the first half of 2022 and it looks like, that before 2023 the application was released, или NDA — New Drug Application, no need to wait.
It turns out, that the entire potential for significant growth in stocks lies in the medium and long term from three to ten years or more, when the company launches its first drugs on the market and they begin to systematically bring money, - up to this point, Turning Point Therapeutics will likely be interesting only as a short speculative deal.
The company's valuation is normalizing. The ratio of liabilities to assets is scanty 0,03 paragraph; multiplier P / BV, according to the latest quarterly report, from the meaning 5,34 dropped to imperfect, but much more acceptable 1,98, and equity is slightly more 1 billion dollars - the company is confidently on its feet, painlessly covers its obligations, and its share price could soon become attractive to value investors.
Large target market. According to research, non-small cell cancer - the most common type of lung tumor: it accounts for more 80% cases. As for solid tumors, the company itself on the fifth slide of the presentation estimates the increase in the order 3,4 million patients annually.
The price dropped to acceptable levels. 1 October analysts at Simply Wall Street found the price 62 $ normal for company shares. Although at that moment the price slightly exceeded this threshold, current elevation in the area 42 $, according to the proposed method, shows undervaluation in 32% - Maybe, this is a good point of purchase for those, who are confident in the success of the business.
What is the bottom line
Turning Point Therapeutics is one of the companies, who are at the forefront of humanity's fight against cancer and by their developments are increasingly bringing medicine closer to victory over oncological diseases. But a positive moral character is not a panacea., and the main factor for investors in the market is the profitability of the transaction and the ability of the shares to bring profit. In this regard, the company's prospects cannot be called cloudless - at least until it has at least one registered drug., which will bring money.