JPMorgan Reiterates Overweight On Medicines Co, Sees $50 Per Share On DCF Basis

• The share price of The Medicines Company MDCO has appreciated 41.79 percent over the past year, from $27.50 on January 22, 2015.
• JPMorgan’s Jessica Fye has reiterated an Overweight rating on the company, with a price target of $50.
• Following the recent sale of the company’s hemostatic agents, Fye expressed a positive view on the stock for 2016, while continuing to see management executing on creating value.

Analyst Jessica Fye stated, “We view the recently announced sale of the hemostatic agents as a positive step along that path which in turn will enable management to advance a core group of potentially high value pipeline assets to key development milestones over the next 12-18 mos.”

Topline Phase II data for PCSK9 is expected in 4Q16, which Fye sees as a “key pipeline event” for Medicines Company.

Related Link: Medicines Co Up For Sale? Bloomberg, Reuters Info Comes Day After Benzinga Report; Companies Decline Comment

In the nearer term, MDCO-216’s interim pilot study data for atherosclerosis is expected in 2Q16, which could potentially be a catalyst for the stock. Fye believes that this product has been underappreciated in the stock and the Street expectations.

Additional clinical updates regarding ABP-700 for anesthesia is also expected during the year, along with topline Phase III data for Carbavance in gram negative infections. Fye believes that the company might file for the latter product later in the year.

“We view the PCSK9 asset as MDCO’s greatest potential value driver, and see phase II data as key to realizing that value,” Fye added.