Market Overview

Medicines Company Gets FDA Approval, Has 119% Upside According To This Analyst

Share:
Medicines Company Gets FDA Approval, Has 119% Upside According To This Analyst

The Medicines Company (NASDAQ: MDCO) announced FDA approval for Vabomere injection to treat adult patients with complicated urinary tract infections. The company said the drug will be made available in the fourth quarter of 2017.

Following the announcement, Chardan analyst Gbola Amusa said the Vabomere approval would catalyze material upside for Medicines Company shares.

The firm has a Buy rating and an $85 price target on the stock, suggesting roughly 119 percent upside from current levels.

Notwithstanding the approval, shares of Medicines Company were sliding 5.5 percent to $36.58.

See Also: GlaxoSmithKline Recent Pullback Delivers A Healthy Opportunity To Buy

Vabomere, belonging to a new class of beta-lactamase inhibitors, is the first carbapenem-based combo product approved. Chardan indicated that no AdComm meeting was required for approval. The approval was supported by the results of the 550-patient phase III TANGO-1 study, the firm said.

According to Chardan, Vabomere approval is likely to catalyze a value-enhancing monetization of the infectious disease business. Additionally, the firm said it expects Medicines Company value accretion, as it focuses on divestments to unlock value.

Latest Ratings for MDCO

DateFirmActionFromTo
Apr 2019UpgradesNeutralBuy
Mar 2019Initiates Coverage OnOutperform
Mar 2019Initiates Coverage OnBuy

View More Analyst Ratings for MDCO
View the Latest Analyst Ratings

Posted-In: Chardan Gbola AmusaAnalyst Color News FDA Analyst Ratings Best of Benzinga

 

Related Articles (MDCO)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
SKXMaintains44.0
HYMaintains66.0
MSFTMaintains160.0
SKXUpgrades
WLTWMaintains208.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

H&R Block Shares Stumble After 'Tough To Read' Q1 Report

Warren Buffett Isn't 100% Convinced The Economy Grew 3%