Oppenheimer Comments on The Medicines Company (MDCO) Following FDA Approval for VABOMERE
This morning, The Medicines Company (NASDAQ:MDCO) announced that it had received FDA approval for its drug VABOMERE. This drug is used to treat adult patients with complicated urinary tract infections (cUTI), including pyelonephritis, caused by designated susceptible Enterobacteriaceae.
Following the news of the FDA's approval, Oppenheimer analyst Jay Olson reiterated a Perform rating on MDCO with a price target of $50, which implies an upside of 35% from current levels.
Looking ahead, Olson sees use of Vabomere in the Carbapenem-resistant Enterobacteriaceae (CRE) population, where the agent is "well differentiated by efficacy, lack of renal toxicity and no need for therapeutic drug monitoring." The analyst noted, "Based on TANGO-1 and 2 results, we expect Vabomere to be preferred in the CRE population across infection types (cUTIs, AP, HABP/VABP, bacteremia, cIAI) and patient populations (immunocompromised, renal impairment) compared to best available therapy. We are looking forward to data at IDWeek and details on a potential ID business deal."
According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Jay Olson has a yearly average return of 5.7% and a 51.4% success rate. Olson has a average return when recommending MDCO, and is ranked #1311 out of 4621 analysts.
Out of the 5 analysts polled in the past 3 months, 4 rate MDCO stock a Buy, while 1 rates the stock a Hold. With a return potential of nearly 50%, the stock's consensus target price stands at $56.
00.
