Oppenheimer Initiates a Hold Rating on Medicines Co

By Ryan Adsit

Medicines Co (NASDAQ: MDCO) received a Hold rating and a $50 price target from Oppenheimer analyst Jay Olson today. The company’s shares closed last Friday at $42.56.

Olson noted:

“MDCO is in the final stages of a remarkable transition from pharma to biotech. With two well-differentiated late-stage assets in the pipeline, management has unlocked significant value for shareholders by focusing on areas of high unmet medical need. We view inclisiran as a potentially game-changing treatment option for patients with uncontrolled LDL cholesterol. We expect Carbavance to become an important treatment option for patients with gram-negative infections. We forecast non–risk- adjusted US revenues to reach $3B and $700M for inclisiran and Carbavance, respectively, in 2030. We apply risk adjustments of 47% to inclisiran and 88% to Carbavance.”

According to TipRanks.com, Olson is a 3-star analyst with an average return of 4.5% and a 54.0% success rate. Olson covers the Healthcare sector, focusing on stocks such as Eiger Biopharmaceuticals, Intercept Pharma, and Axovant Sciences.

Medicines Co has an analyst consensus of Strong Buy, with a price target consensus of $58.60.

Based on Medicines Co’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $24.22 million and GAAP net loss of $103 million. In comparison, last year the company earned revenue of $50.31 million and had a GAAP net loss of $93.45 million.

Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MDCO in relation to earlier this year. Earlier this month, William Crouse, a Director at MDCO bought 7,500 shares for a total of $147,000.

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The Medicines Co. is a biopharmaceutical company, which focuses on saving lives, alleviating suffering and contributing to the economics of healthcare by focusing on leading acute and intensive care hospitals worldwide. The company markets its brands Angiomax, Cleviprex, injectable emulsion, Ionsys, Kengreal, Minocin for injection, and Orbactiv. The company was founded by Clive A. Meanwell, Helmut Giersiefen, John W. Villiger and T. Scott Johnson on July 31, 1996 and is headquartered in Parsippany, NJ.