The Medicines Company Is A Major Cardiovascular Player In The Making

HC Wainwright has started coverage of The Medicines Company MDCO with a Buy rating and $57 price target on the back of Phase 3-ready inclisiran (PCSK9si).

Key Catalyst: Inclisiran

Inclisiran is an RNAi therapeutic that inhibits synthesis of PCSK9 directly in the liver for potent and durable lowering of LDL cholesterol in patients with hypercholesterolemia.

The brokerage noted that inclisiran is superior to the currently marketed monoclonal antibodies (mAbs), evolocumab and alirocumab, for at least three key reasons:

1. Twice yearly dosing, versus monthly or every other week.
2. Inherent cost advantage of estimated $5,000 annual price before rebates versus current mAbs price at around $14,000. Payers will likely favor inclisiran due to its low cost.
3. Consistency of effect (minimal inter-patient variability).

Analyst Ed Arce models peak annual inclisiran sales of $5.0 billion in 2030 and noted the company’s second asset Carbavance is also a likely blockbuster.

Other Drivers

Other multiple drivers for upside include MDCO-700, a Phase 2 asset for general anesthesia and procedural sedation, and potential development and commercialization collaboration agreements for both inclisiran and/or Carbavance for any ex-U.S. market territories.

Importantly, Arce believes an M&A exit for company is plausible given Pfizer Inc. PFE just recently discontinued development of its own PCSK9 inhibitor, bococizumab.

At last check, shares of The Medicines Company rose 1.91 percent to $34.06.