Medicines Co. rises on analyst coverage
WASHINGTON (AP) — Shares of the Medicines Co. rose Tuesday after an analyst highlighted the commercial potential for two experimental drugs in the company's pipeline.
THE SPARK: Oppenheimer analyst Christopher Holterhoff initiated coverage of the drugmaker with an "Outperform" rating and a price target of $35, implying he expects shares to surge nearly 68 percent in the next 12 to 18 months.
THE BIG PICTURE: Medicines Co. makes the anti-clotting drug Angiomax. In the first nine months of the year, U.S. sales of the drug rose about 10 percent to $360.5 million. The Parsippany, N.J., company is studying several other clotting products and an experimental broad-spectrum antibiotic.
THE ANALYSIS: Holterhoff notes that most of the company's share price appears to only reflect the value of Angiomax, but that Medicines is developing two drugs that "could serve as significant positive catalysts for the stock." Late-stage study results for the company's clotting drug Cangrelor are expected later this year or early next year. Data from two studies of the company's antibiotic oritavancin for bacterial skin infections is due out in the first half of 2013.
SHARE ACTION: The Medicines Co. shares rose 53 cents, or 2.5 percent, to $21.42 in afternoon trading. Shares of the company are up 15 percent in the year to date.
