Poonam A. Arora
Long/short equity, value, research analyst, biotech

Medivation: Still A Long But With Limited Upside

Medivation (NASDAQ:MDVN) is an oncology focused biotechnology company. Its only drug is an androgen receptor blocker called Xtandi, approved for treating metastatic castrate resistant prostate cancer (mCRPC) patients that have failed chemotherapy (post-chemo). The agent is undergoing Phase III development as treatment for mCRPC patients that have not received chemotherapy (pre-chemo). In addition, the compound is being evaluated in a Phase I study as treatment for breast cancer.

Xtandi's market launch in September 2012 followed that of Zytiga in May 2011. Both drugs treat post-chemo mCRPC patients. Moreover, both affect testosterone signaling, but through different mechanisms of action. Xtandi inhibits androgen receptor (NYSE:AR) activity at three steps: it prevents the binding of the testosterone with...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details