Medivation (MDVN) Makes The Best Takeover Target, Not Dendreon (DNDN) - Jefferies
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Price: $49.81 +2.62%
Rating Summary:
18 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
18 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade MDVN Now!
Despite market rumors to the contrary, Medivation (NASDAQ: MDVN) makes a much better takeover target in prostate cancer than Dendreon (NASDAQ: DNDN), according to analysts at Jefferies.
"Based on our M&A analysis involving DCF for the post-merger New Company (NewCo) and ROI for the acquirer, MDVN appears more compelling as a takeout target," the firm said.
An Amgen (Nasdaq: AMGN)/Medivation 'newco' offers an incremental $5B EV over AMGN as a stand-alone. This supports a takeout price of $134/share, or a 55 percent premium over the current price.
Alternativly, Provenge's lackluster prospects fall short in supporting Dendreon's current valuation as a stand-alone or takeout target, the firm said.
An Amgen (Nasdaq: AMGN)/Dendreon 'newco' presents an incremental $1.2B EV over AMGN as a stand-alone. This breaks even at DNDN's current $7.52 share price and diluted equity value of $1.2B.
For an analyst ratings summary and ratings history on Medivation click here. For more ratings news on Medivation click here.
Shares of Medivation closed at $86.13 yesterday, with a 52 week range of $14.32-$89.46.
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"Based on our M&A analysis involving DCF for the post-merger New Company (NewCo) and ROI for the acquirer, MDVN appears more compelling as a takeout target," the firm said.
An Amgen (Nasdaq: AMGN)/Medivation 'newco' offers an incremental $5B EV over AMGN as a stand-alone. This supports a takeout price of $134/share, or a 55 percent premium over the current price.
Alternativly, Provenge's lackluster prospects fall short in supporting Dendreon's current valuation as a stand-alone or takeout target, the firm said.
An Amgen (Nasdaq: AMGN)/Dendreon 'newco' presents an incremental $1.2B EV over AMGN as a stand-alone. This breaks even at DNDN's current $7.52 share price and diluted equity value of $1.2B.
For an analyst ratings summary and ratings history on Medivation click here. For more ratings news on Medivation click here.
Shares of Medivation closed at $86.13 yesterday, with a 52 week range of $14.32-$89.46.
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