BTIG analyst Timothy Chiang said the sell-off in Progenics Pharmaceuticals (NASDAQ: PGNX) on 1404 Phase 2 results "seems overdone".

Chiang commented, "We believe this morning’s weakness in PGNX shares creates a potential buying opportunity. While the shares are currently down meaningfully (~16%) following the Co.’s release of mixed top-line P3 results for 1404, we do not think that 1404 should be completely written off given that it did meet the specificity endpoint (which identifies patients without clinically significant prostate cancer). As a result, we believe 1404 could still have value in the marketplace as a tool for active surveillance of prostate cancer. We expect more detailed results from this study to be released in 2019, with the Co. reviewing the full data set within the next quarter. PGNX also has additional prostate specific membrane antigen (PSMA-targeted) imaging agents in the clinic, including Pyl (PSMA-targeted PET / CT imaging agent in Phase 2/3), which is expected to read out top-line results in 4Q18. One of the key differences with this study is that patients enrolled are high risk, and have recurrent / metastatic forms of prostate cancer."

The firm reiterated a Buy rating and price target of $14.

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 $7.30 yesterday.