UPDATE: Citigroup Initiates Coverage on The Medicines Company with Neutral Rating, $27 PT

In a report published Friday, Citigroup initiated coverage on The Medicines Company MDCO with a Neutral rating and $27.00 price target. Citigroup noted, “We are cautious on the ability of MDCO's pipeline to replace the >90% of total revenues represented by Angiomax before the drug's 2019 loss of exclusivity. Based on our research and physician checks, we question whether the cumulative opportunities for Cleviprex, cangrelor, and oritavancin would be sufficient to offset the revenue gap, even assuming cangrelor and oritavancin are ultimately approved. In the interim, remaining patent litigation and pivotal readouts from Angiomax's competitors present risks to nearer-term cash flows. We are initiating with a Neutral/High Risk rating and $27 price target.” The Medicines Company closed on Thursday at $23.07.