Guggenheim Remains Bullish After Medicines Co. (MDCO) Conference Call

Guggenheim maintains a Buy rating and $42.00 price target on The Medicines Company (NASDAQ: MDCO) following the company's conference call. With six approvals already, Guggenheim believes that generic competition concerns for Angiomax are overdone.

Analyst Louise Chen commented, "We remain positive on MDCO shares following the company's conference call on ABP-700 and MDCO-216. These are two earlier stage drugs with large market potential, which recently reported positive Phase 1 data. These data underscore our investment thesis on MDCO, which is that its pipeline is underappreciated. With six approvals already in '15, we believe concerns regarding potential generic competition for Angiomax in '15 are overdone. Although the timing of generic competition is hard to predict, we believe the risk/reward is to the upside here (we estimate shares could be down $7 on generic competition in '15 and up as much as $32 (or 114%) if MDCO wins case or settles). Therefore, we believe that it is a good time to take another look at MDCO because the Street is so focused on generic Angiomax that it is ignoring up to eight launches over the next two years with peak sales potential of $3B ($16.50 in EPS) for these drugs. There is also a free call option on MDCO's early stage pipeline (MDCO-216, ABP-700, ALN-PCS)."

For an analyst ratings summary and ratings history on The Medicines Company click here. For more ratings news on The Medicines Company click here.

Shares of The Medicines Company closed at $28.09 yesterday.

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