Chardan Sees Promise Of ALN-PCSsc, Initiates The Medicines Co. With Buy

• The Medicines Company MDCO shares have been volatile over the past one month, moving in the $30-$40 range, although are down only around 0.3 percent since October 5.
• Chardan Capital Markets’ Gbola Amusa initiated coverage of the company with a Buy rating and a price target of $50.
• The company has leverage to one of Chardan’s long-time favorite spaces in therapeutics - anti-PCSK9 lipid management, Amusa said.

Analyst Gbola Amusa mentioned that the anti-PCSK9 lipid management market has high potential and could reach sales of $38.3 billion in 2025. Consistent with the earlier view of Chardan’s analysts estimating blockbuster sales of anti-PCSK9 products, there is now new evidence of “the potential for a paradigm shift” in this market.

The Medicines Co and its partner Alnylam Pharmaceuticals, Inc. ALNY have announced that their first-in-class PCSK9 synthesis inhibitor, ALN-PCSsc, had produced LDL-C lowering comparable to results for Repatha and for Praluent. The effects, however, last 140 days, which permits bi-annual [twice a year] dosing.

Amusa wrote, “We note that, since late August, further important positives have emerged that enhance the value of ALN-PCSsc and other anti-PCSK9 assets.”

The Medicines Co’s shares have gained merely 16 percent since market close on August 28. Given that the new bi-annual ALN-PCSsc data is due next week at the American Heart Association Scientific Session in Orlando, “now is the time to act on MDCO shares,” the analyst commented.

In the report Chardan Capital Markets noted, “In addition to the upcoming catalyst, we note another potential lever for performance, as: investors are increasingly calling for a breakup or sale of MDCO to unlock shareholder value, and management is increasingly focused on restructuring to unlock value.”