Needham & Company analyst Chad Messer reiterated a Buy rating and $11 price target on Progenics Pharmaceuticals (NASDAQ: PGNX) after the FDA approved oral Relistor. He called it the first of many upcoming drivers for the stock.

Messer commented, "PGNX shares are indicated up ~25% this morning on the approval of oral Relistor for opioid induced constipation (OIC). While this may seem modest for a major drug approval, we remind investors that a) the approval was mostly expected and b) this is the first event in a sequence of events that could transform the company over the next year. Progenics has earned a $50M milestone with Relistor approval bolstering its $66M in 1Q:16 cash. Partner Valeant expects to launch Relistor in 3Q and PGNX will collect a 15 to 19% royalty on sales. In late 2016 or early 2017 we look for data from the pivotal Azedra trial in pheochromocytoma. Progenics could launch that drug itself in 2017 and conceivably be cash flow positive by 2018."

For an analyst ratings summary and ratings history on Progenics Pharmaceuticals click here. For more ratings news on Progenics Pharmaceuticals click here.

Shares of Progenics Pharmaceuticals closed at $4.94 yesterday.

Analyst Comments FDA

Brean Capital Sees 'Significant Uptake' for Progenics' (PGNX) Oral RelistorJuly 20, 2016 10:22 AM Progenics Pharma (PGNX) Surges Over 20% as FDA Approval Oral RELISTORJuly 20, 2016 8:10 AM BTIG Positive on Progenics Pharma (PGNX) Following FDA Approval of RELISTOR as OIC Treatment (VRX)July 20, 2016 7:57 AM Progenics (PGNX) volatility elevated into FDA approval of constipation treatment July 20, 2016 5:43 AM Valeant Pharma (VRX), Progenics Pharmaceuticals (PGNX) Granted FDA Approval for RELISTORJuly 19, 2016 6:06 PM Valeant and Progenics Announce FDA Approves RELISTOR® Tablets for the Treatment of Opioid-Induced Constipation in Adults with Chronic Non-cancer PainJuly 19, 2016 6:04 PM