UPDATE: Bank of America Initiates Neutral, $29 PO on The Medicines Company; Pipeline Uncertain
Bank of America initiated its coverage on The Medicines Company (NASDAQ: MDCO) with a Neutral rating and a price target of $29.
Bank of America noted, "MDCO is a profitable company focused on hospital-based drugs, with its key product Angiomax, the dominant anti-coagulant used in US angioplasty procedures (PCI). Our NPV estimate for Angiomax with assumed generic entry in 2019 is $24/sh, with another $4.50 for net cash. We attribute minimal risk-adjusted value for MDCO's late-stage pipeline products due to upcoming binary phase 3 results near year-end that in our view represent meaningful upside and downside drivers to the stock. If near-term phase 3 results are unfavorable, we would expect MDCO to pursue bolt-on acquisitions of hospital-based products."
The Medicines Company closed at $25.08 on Tuesday.
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