Jefferies Reiterates Buy Rating, $34 PT on Partnership with Alnylam Pharmaceuticals

In a report published Monday, Jefferies reiterated its Buy rating and $34.00 price target on The Medicines Company MDCO. Jefferies noted, “This morning, MDCO and Alnylam Pharmaceuticals (ALNY, $24.24, NC) announced they have formed a strategic partnership to develop a RNAi-based therapeutic program for the treatment of hypercholesterolemia. Included in this program is ALN-PCS02, an intravenously administered RNAi therapeutic targeting PCSK9, a protein that circulates in the plasma and plays a major role in regulating LDL-C levels by binding LDL-receptors on hepatocytes, inducing internalization and degradation of the receptor. RNAi represents a different mechanistic approach to targeting PCSK9 by silencing the gene that synthesizes the protein, v. REGN727 (REGN, $172.88, Hold) and AMG145 (AMGN, $86.30, Buy) that are antibodies that block the interaction b/w PCSK9 and the LDL-R. MDCO/ALNY believes its approach may offer advantages from the antibody approach: 1) it could modulate both intracellular and extracellular PCSK9 for a more complete effect, and 2) it could allow a more consistent pharmacologic effect given the high variability of PCSK9 levels across pts. However, these theoretical advantages remain to be borne out in clinical studies.” The Medicines Company closed on Friday at $30.53.