Medivation (MDVN) Makes The Best Takeover Target, Not Dendreon (DNDN) - Jefferies
Tweet Send to a Friend
Get Alerts MDVN Hot Sheet
Price: $48.86 -1.91%
Rating Summary:
18 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
18 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
"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.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Bausch & Lomb near deal to sell to Valeant Pharmaceuticals (VRX) - WSJ
- Needham & Company Boosts Numbers on Infoblox (BLOX) on Strong Q3
- Hewlett-Packard (HPQ) Q2 Performance Wins Praise on Wall Street; Jefferies Raises to Hold
Create E-mail Alert Related Categories
Analyst Comments, RumorsRelated Entities
Jefferies & Co
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
