UPDATE: Bank of America Merrill Lynch Reiterates Neutral Rating, Raises PT on The Medicines Company
In a report published Wednesday, Bank of America Merrill Lynch reiterated its Neutral rating on The Medicines Company (NASDAQ: MDCO), and raised its price target from $26.00 to $30.00.
BofA Merrill Lynch noted, “On Tuesday, MDCO announced results from its phase 3 PHOENIX trial that showed its reversible IV anti-platelet drug cangrelor achieved statistical significance in improvement of ischemic events vs. clopidogrel in patients undergoing percutaneous coronary intervention (PCI). We had viewed this outcome as likely given the favorable interim read and the scrutinized trial design following the failure of its previous phase 3 trial (CHAMPION). We view achievement of statistical significance as a major step forward and have increased our probability of approval to 80% (from 60%), and model peak risk-adjusted US sales of ~$210mn in 2019 ($140mn previously). However, we remain cautious on cangrelor's peak penetration rate in the PCI market (20%). Our PO increased to $30 (from $28) as a result of our model changes.”
The Medicines Company closed on Tuesday at $28.83.
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