Maxim affirms its Buy rating and $17 price target on Medivation (Nasdaq: MDVN) following news that the company and BioMarin Pharmaceutical entered into an asset purchase agreement under which Medivation will acquire all worldwide rights to talazoparib (formerly referred to as BMN 673), a highly-potent, orally-available poly ADP ribose polymerase (PARP) inhibitor currently in a Phase 3 study for the treatment of patients with deleterious germline BRCA 1 or BRCA 2 mutations and locally advanced and/or metastatic breast cancer.

Analyst Jason Kolbert offered the following commentary:

• Medivation and BioMarin (Nasdaq: BMRN) have announced an asset purchase agreement in which Medivation will acquire all rights to talazoparib (a potent, orally-available poly ADP ribose polymerase PARP) inhibitor (it has shown activity against cancers involving defects in DNA repair). It is currently in a Phase III study for the treatment of patients with deleterious germline BRCA 1 or BRCA 2 mutations and locally advanced and/or metastatic breast cancer.
• We applaud the acquisition and believe it is a good use of cash ($410M upfront and $160M in milestones plus royalties) for a late-stage asset in a therapeutic area (breast cancer) in which we believe Medivation can surprise with Xtandi (triple-negative BC).
• Medivation supplied analysts with selected publications, which we are reviewing. Suffice to say, the science in this area is fascinating, well-researched, and cutting-edge. Please ask if you would like a copy of the paper(s).

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