BTIG Starts Medivation (MDVN) at Neutral

BTIG initiated coverage on Medivation (NASDAQ: MDVN) with a Neutral rating. Analyst Hartaj Singh noted limited potential upside for $100K/year therapies.

"We believe that the current valuation accounts for the ~$3.5B FY2018 Xtandi consensus sales estimates (50% to Medivation). We are intrigued by Xtandi within a subset of breast cancer and the PD-1 therapy pidilizumab, recently in-licensed with a focus on blood cancers, and await further data," said Singh."Current valuation of Medivation is levered to increased access in earlier stage prostate cancer and among urologists (who like Xtandi’s convenience). Evaluate Pharma consensus for 2020 Xtandi sales of $5B is dependent on earlier stage treatment, where similar but less effective anti androgen therapies already exist."

"However, with an increasing focus on cost containment in the medical community and among insurance companies, there is limited upside to how far a ~$100K/Pt./Year therapy could go. Increasing rebating and discounting pressure is already being felt by biotech companies," he added.

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 $104.07 yesterday.

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