Medivation (MDVN) Ripe for the Picking on Expected Enzalutamide Approval
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Medivation (Nasdaq: MDVN) investors should have a lot of motivation in sticking with the stock, despite a massive rise in its market value over the last year.
Market data has Medivation shares popping 309 percent from the same period in 2011, mainly on expectations that its prostate cancer drug candidate enzalutamide will get FDA approval this year. Once that happens, analysts expect top-line growth of six-times or more by 2014, from $60 million currently to over $350 million.
In addition to the benefit that jump will add to its bottom-line, Bloomberg mulls the idea that partner Astellas will want to buy out Medivation, which currently boasts a market cap of $3.3 billion. The move might be motivated to avoid needing to split profits. Additionally, Abbot (NYSE: ABT) and AstraZeneca's (NYSE: AZN) AbbVie may make a bid to refresh its pipeline.
Offering $140 per share would be a 53 percent premium to last weeks close and still grab Medivation at a cheaper valuation to peers.
Bloomberg noted that a spokesperson for Medivation said the company plans to remain independent, seeing it as the best way to return shareholder value.
Competition in the prostate cancer drug market would come from Johnson & Johnson's (NYSE: JNJ) Zytiga, which received FDA approval in 2011. Unlike Zytiga, enzalutamide can be used solely.
Medivation shares are bid slightly higher Monday morning.
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Market data has Medivation shares popping 309 percent from the same period in 2011, mainly on expectations that its prostate cancer drug candidate enzalutamide will get FDA approval this year. Once that happens, analysts expect top-line growth of six-times or more by 2014, from $60 million currently to over $350 million.
In addition to the benefit that jump will add to its bottom-line, Bloomberg mulls the idea that partner Astellas will want to buy out Medivation, which currently boasts a market cap of $3.3 billion. The move might be motivated to avoid needing to split profits. Additionally, Abbot (NYSE: ABT) and AstraZeneca's (NYSE: AZN) AbbVie may make a bid to refresh its pipeline.
Offering $140 per share would be a 53 percent premium to last weeks close and still grab Medivation at a cheaper valuation to peers.
Bloomberg noted that a spokesperson for Medivation said the company plans to remain independent, seeing it as the best way to return shareholder value.
Competition in the prostate cancer drug market would come from Johnson & Johnson's (NYSE: JNJ) Zytiga, which received FDA approval in 2011. Unlike Zytiga, enzalutamide can be used solely.
Medivation shares are bid slightly higher Monday morning.
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