RBC Believes Medicines Co. Option to Buy ProFibrix is at 'Reasonable Cost,' Maintains Outperform, $41 Target

In a report published on Tuesday, RBC analyst Adnan Butt views Medicines Company's MDCO recent $10 million option to acquire of ProFibrix as at a "reasonable cost." Butt noted if there is positive review of the pending Phase 3 clinical trial results of Fibrocaps(TM), Medicines Company will purchase all of the outstanding capital stock of ProFibrix B.V. Fibrocaps is a dry powder being developed to help stop bleeding during surgery. This may be a ready-to-use mixture that is stable in room temperature versus current products which need to be frozen or reconstituted, according to Butt. The RBC analyst believes new Fibrocaps products could have synergies with Medicines Company's portfolio, something which would add to the pipeline for potential regulatory filings in 2014. RBC rates the company Outperform with a price target of $41.00. With shares of Medicines Company last trading up 0.1 percent to $33.52, RBC's price target represents potential upside of about 22 percent.