Analysts’ Recommendations for The Medicines Company in October


Oct. 16 2017, Updated 3:10 p.m. ET

Performance in 2Q17

In 2Q17, The Medicines Company (MDCO) reported revenues of $18.7 million, which is a fall of 66.0% on a YoY (year-over-year) basis. The fall is mainly attributed to the generic erosion of Agiomax’s market share after the drug lost its patent protection in 2015.

Angiomax (bivalirudin) injection is used as an anticoagulant in combination with aspirin in patients undergoing percutaneous coronary intervention (or PCI), in patients who are at risk of heparin-induced thrombocytopenia and thrombosis syndrome (or HITTS) or heparin-induced thrombocytopenia (or HIT) and are undergoing PCI, and in patients who have unstable angina and are undergoing percutaneous transluminal coronary angioplasty (or PTCA).

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Angiomax is currently facing competition from generic versions launched by Hospira, a company that was later acquired by Pfizer (PFE); Fresenius Kabi; and Novartis’s (NVS) Sandoz. Sandoz has entered into an agreement with The Medicines Company and has launched the authorized generic version of Angiomax in the United States. In 2Q17, The Medicines Company’s revenues included $5.4 million in royalty revenue paid by Sandoz. In 2Q17, The Medicines Company witnessed a 27.0% YoY rise in consolidated sales of the acute bacterial skin and skin structure infections (or ABSSSI) drug Orbactiv and the antibiotic Minocin, which came to $8.0 million.

The company’s operating expenses in 2Q17 were $83.0 million, which is a fall of 37.0% on a YoY basis. That’s attributed to reduced head count costs, a decline in purchasing costs due to the discontinuation of the clinical development program of investigational anesthetic therapy MDCO-700, and the timing of its investments in its infectious diseases portfolio. However, this impact was partially offset by increased spending on investigational PCSK9 (proprotein convertase subtilisin/kexin type 9) inhibitor inclisiran.

The Medicines Company accounts for 0.29% of the iShares Core S&P Small-Cap’s (IJR) total portfolio holdings.

Analysts’ recommendations for The Medicines Company and peers

Of the ten analysts covering The Medicines Company in October 2017, three have rated the stock a “strong buy,” five have rated it a “buy,” and two have rated it a “hold.”

Of the 13 analysts covering United Therapeutics (UTHR) in October 2017, 15.0% have rated the company a “buy.” About 50.0% of the analysts covering Regeneron (REGN) have given it a “buy” recommendation, while 75.0% of the analysts tracking Jazz Pharmaceuticals have rated it a “buy.”

In the next part of this series, we’ll look at the revenue growth prospects for The Medicines Company.


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