Citigroup Adds Tesaro To 'Focus List,' Removes Medivation

Analysts at Citigroup on Monday added shares of TESARO Inc TSRO to its "Citigroup's Focus List" while at the same time removing shares of Medivation Inc MDVN from the same list.

Tesaro: Leadership Position

The analysts, led by Yaron Werber, MD, noted that Tesaro is in a leadership position in ovarian and breast cancer for HGSOC and BRCA+ women. The company's "differentiated" companion diagnostic is "largely misunderstood" by investors as global sales should reach $895 million with a 70 percent probability of success.

Werber noted that positive interim maintenance NOVA data for gBRCAmut in ovarian cancer is possible in the first half of 2015. The analyst added that final data in non-gBRCAmut ovarian cancer is possible in late 2015 or early 2016, which could lead to approval in late 2016 or the first half of 2017.

Werber also stated that positive phase 3 BRAVO data in breast cancer should be released by mid 2016.

Tesaro: Better Value Can Be Found Elsewhere

Werber wrote that he is removing Tesaro from the "Focus List" after shares posted a 270 percent return since the company was initially added in 2012.

The analyst noted that "we continue to like the stock" as upside from Xtandi is expected, but shares of Tesaro offer "better relative value."