Stifel Reiterates Buy on Medivation (MDVN) Following Talazoparib Acquisition

Stifel reiterated a Buy rating and $114.00 price target on Medivation (NASDAQ: MDVN) following the acquisition of all rights to Talazoparib from BioMarin. Talazoparib is PARP inhibitor in Phase III testing for the treatment of breast cancer patients with deleterious germline BRCA 1 or BRCA 2 mutations. The Phase III trial is expected to readout by YE16. MDVN purchased Talazoparib in exchange for $410M in cash, and potential for an additional $160M in milestones as well as mid-single digit royalties.

Analyst Thomas Shrader commented, "Earlier today Medivation acquired all rights to Talazoparib from BioMarin – in exchange for $410M in cash, and potential for an additional $160M in milestones as well as mid-single digit royalties. Talazoparib, a PARP inhibitor, is in Phase III testing for the treatment of breast cancer patients with deleterious germline BRCA 1 or BRCA 2 mutations. While we welcome any expansion to Medivation’s pipeline – as previously it was comprised of only Xtandi and pidilizumab – we view the breast cancer market as crowded and competitive,. Overall we believe $410M is an expensive price for a late stage clinical breast cancer asset."

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 $85.04 yesterday.

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