XTANDI Performance Solid in Q1 Amid Light Results; Aegis Keeps Medivation (MDVN) at 'Buy'

Aegis Capital affirms Medivation (Nasdaq: MDVN) at Buy with a price target of $125 following Q1 results and update.

Analyst Ram Selvaraju commented that missed estimates was due to the booking of a milestone payment from its partner Astellas in the second quarter and does not reflect upon the growth trajectory for XTANDI (enzalutamide), Medivation's sole marketed product, which continues to exhibit rapid market uptake in both the U.S. and Europe. Medivation reported that first quarter sales of XTANDI were $124.5mm in the U.S. and $47.8mm in Europe, tracking ahead of expectations. The firm raised its guidance on full-year U.S. net sales of XTANDI from the $500mm - $535mm range announced previously to
$540mm - $575mm. We continue to consider this guidance conservative, and believe that U.S. net sales could surpass $600mm if the product is approved in the pre-chemo setting in a timely manner.

We expect Medivation to return to profitability next quarter and maintain cash flow-positive status for the remainder of the year. The firm closed the quarter with $241.5mm in cash and we expect the firm's balance sheet to continue to strengthen going forward, Selvaraju noted.

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 $60.00 yesterday.

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