Market Overview

Mizuho Analyst On The Fence At Medicines Co. Pending Patent Appeal

Share:
Related MDCO
The Medicines Company Is A Major Cardiovascular Player In The Making
Benzinga's Top Initiations
Wainwright bullish on The Medicines Co's inclisiran, sees 65% upside in the stock (Seeking Alpha)
Related HSP
3 Biotechs Atlantic Equities Loves And 1 It's Avoiding
Pfizer Upgraded At Cowen On 'Compelling' Valuation, Innovation

Uncertainty over patents on The Medicines Company (NASDAQ: MDCO)'s lead blood-clot drug Angiomax will hurt results going forward, an analyst said Friday.

Hospira, Inc. (NYSE: HSP) is set to launch a generic version of Angiomax in June under a court ruling concerning a patent dispute last year.

Although Medicines Co. is appealing that ruling, the company said Thursday that its customers are holding off on purchases in hopes of a cheaper alternative.

Mizuho's Mario Corso maintained a Neutral rating "pending the appeal."

Related Link: Biotech Investors: Nomura Says To Watch These Dates

But Corso cut his target 9 percent to $27.50 citing lower than expected revenue.

Shares of Medicines Co. changed hands recently at $28.22, up $0.40.

On Thursday, the Parsippany, New Jersey-based company blamed a roughly 27 percent first-quarter revenue decline on customer uncertainty over patent protections on Angiomax, which accounts for more than 80 percent of revenue.

But Medicines Co. faces at least three regulatory decisions that will soon shed important light on its cost structure going forward, Corso said.

The company expects a regulatory decision April 15 on its new drug application for Cangrelor blood-clot medicine. On April 30, the company expects a decision on its Ionsys patient-controlled pain management product, while a similar ruling on its Raplixa blood coagulating product may come in late April or early May.

Latest Ratings for MDCO

DateFirmActionFromTo
Dec 2016H.C. WainwrightInitiates Coverage OnBuy
Aug 2016CitigroupMaintainsNeutral
May 2016Cowen & Co.Initiates Coverage onOutperform

View More Analyst Ratings for MDCO
View the Latest Analyst Ratings

Posted-In: Angiomax CangrelorAnalyst Color Biotech Price Target Reiteration Analyst Ratings General

 

Related Articles (MDCO + HSP)

View Comments and Join the Discussion!