Medivation hit by soft Xtandi guidance; subsequent downgrades


U.S. net sales are expected at $500M-$535M in 2014 vs. $392.4M for 2013.

Downgrading from Buy to Hold with PT reduced to $80 from $89, Jefferies Biren Amin says, "The revenue guidance implies very modest Xtandi growth in the post-chemo market with little contribution from off-label pre-chemo until the anticipated approval in at end of Q3."

Xtandi is now on a very different trajectory than previously thought, suggesting shares are about 30% overvalued, says Cowen, cutting to Underperform with $56 price target.

A material disappointment to investors who had become convinced Xtandi's revenue growth would accelerate after Prevail, says Bernstein.

MDVN -10.6% premarket

From other sites
Comments (1)
  • 17208242
    , contributor
    Comments (25) | Send Message
     
    I don't believe that these valuations are taking into consideration acquisition or in-licensing that may occur between now and the end of 3Q. It should be no surprise to investors that urologist do not write off label and hence pre-chemo use will not be significant until approval. Medivation has been saying this all along. There is also the possibility that Medivation may be an acquisition target for larger companies - JNJ or others.
    28 Feb 2014, 09:04 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs