The Medicines Company (NASDAQ:MDCO)

CAPS Rating: 3 out of 5

A pharmaceutical company provides innovative, cost effective acute care hospital products to the worldwide hospital marketplace.

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Member Avatar marsuculix (< 20) Submitted: 7/15/2014 4:04:09 AM : Outperform Start Price: $27.18 MDCO Score: -13.66

need for new antibiotics will support $MDCO ....

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Member Avatar genedom (97.23) Submitted: 6/22/2014 12:37:48 PM : Outperform Start Price: $29.51 MDCO Score: -21.40

Still long way to go before the patent expired. The management is doing the right thing in filling the gap. Undervalued.

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Member Avatar TMFSpiffyPop (99.39) Submitted: 6/20/2014 2:14:53 PM : Underperform Start Price: $29.06 MDCO Score: +20.23

Once had it on my RB watchlist, but management bungles and no real signs of a Rule Breaker have me and my team thinking this one likely is an: Underperform.

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Member Avatar 401ktimer1 (55.03) Submitted: 2/10/2014 3:48:54 PM : Outperform Start Price: $32.42 MDCO Score: -37.52

IBD 50

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Member Avatar EvanBuck (99.80) Submitted: 9/2/2013 1:46:32 PM : Outperform Start Price: $26.06 MDCO Score: -55.52

zzlangerhans

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Member Avatar TerryHoodSr (34.42) Submitted: 5/29/2013 2:41:47 PM : Outperform Start Price: $30.83 MDCO Score: -47.99

3yr rev growth 10%

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Member Avatar zzlangerhans (99.70) Submitted: 5/26/2013 2:25:22 AM : Outperform Start Price: $33.82 MDCO Score: -47.81

I've watched Medicines' ascent from the sidelines but after reviewing the stock again this week I've decided to follow the story more closely with a green thumb. Angiomax revenues have remained solid, although I'm concerned regarding ongoing litigation with generic manufacturers. Regardless, the drug will only maintain exclusivity through 2019 due to agreements with Teva and Fresenius. However, the company has now produced a second act for the near term in the form of cangrelor, which recently showed strong superiority to Plavix in the CHAMPION PHOENIX trial. The company is also broadening their approach by inlicensing ALN-PCS RNAi from Alnylam and purchasing Incline Therapeutics and their Ionsys pain platform. I'm more skeptical about oritavancin, an antibiotic whose prospects failed to keep developer Targanta from being absorbed for a pittance. Nevertheless, positive phase III data from the SOLO-2 trial could give the stock a boost in mid 2013.

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Member Avatar almodovar (< 20) Submitted: 5/21/2013 12:00:31 PM : Outperform Start Price: $34.07 MDCO Score: -49.44

Long term buy.

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Member Avatar MrOneHundred (30.60) Submitted: 3/12/2013 4:18:02 AM : Underperform Start Price: $32.26 MDCO Score: +54.13

I Find Your Lack Of Fate Disturbing.

The price is the most compelling figure behind this call. Comparing it to both the Book Value and the Sales of the company,

Price/Book Value: 2.95
Price/Sales: 3.08

...the stock seems valued too high at this moment. Average WSJ analyst price target is only $34.89 and the next two quarters (next one coming 04/24) have both a very low Q1 earnings expectation of -$0.25 and a very high Q2 expectation of $0.32. These two figures don't leave a lot of wiggle room here. Even if Q1 exceeds expectations, I would expect the target for Q2 would likely lower some potentially causing a sell off of institutional shares due to a weakened forecast.

The company has also recently taken on a reasonable level of debt. While $226 million can be seen as an investment to help the company get cangrelor off to a good start, I also see it as adding too much risk to investors' equity- especially at this price. Revenue growth has risen very linearly the last five years which instills great confidence in me, as an investor, that the company won't be dieing any time soon. On the other hand, does this price reasonably represent the level of debt the company has or its projected revenue by the end of 2013? No, at least I don't think so.

The drug cangrelor shows great promise as a major game changer in blood thinners; the drug has a fair shot at ousting clopidogrel, the current choice in the hospital. According to the article below,

"In the 11,000-patient study, the drug reduced by 22% the combined rate of death, heart attack and other serious problems associated with blood clots within 48 hours of the stent procedure.... The long-lasting effects of clopidogrel is an important drawback if it is determined that the patient actually needs by-pass surgery, where clopidogrel could substantially increase bleeding risks.... Assuming cangrelor wins approval from the U.S. Food and Drug Administration, it could have major impact 'in our ability to take care of patient with coronary interventions.' "

http://online.wsj.com/article/SB10001424127887323826704578352600036062398.html?KEYWORDS=mdco

Another compelling reason to avoid this stock like the plague is market conditions. Although continued QEing could carry us out of any recession and inflate prices above that which would've been the norm, the overall environment is very risky. If at any moment, the fed decides it's time to stop... well, you get the idea.

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Member Avatar line70day (< 20) Submitted: 1/22/2013 10:12:49 AM : Outperform Start Price: $36.68 MDCO Score: -45.49

third Q rev increased 13.3% yr over yr to 136.8 M gasp net income decreased to $ 9.3M from compared$72.6M prior yr Q non gaap net income $ 21.8 M compared to $9.2M CEO sold shares and chief account sold shares

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Member Avatar alizaidkhalid (< 20) Submitted: 1/21/2013 10:55:41 PM : Outperform Start Price: $30.15 MDCO Score: -55.53

because their product can be tolerated by large number of
people also drug very expensive in the market
although 96% of people suffer from poverty in my area but easy they can by MDCO product

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Member Avatar HardnoseDotCom (73.66) Submitted: 4/25/2011 1:35:10 PM : Outperform Start Price: $16.17 MDCO Score: -2.87

low PEG, strong price uptrend

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Member Avatar valuefocusgroup (< 20) Submitted: 4/5/2011 9:32:19 AM : Outperform Start Price: $16.31 MDCO Score: -4.75

Price/earnings of 8.28, market cap of 866.36, debt/equity of zero, Return on Invested Capital (TTM) of 35.00, based in New Jersey, United States, pharma company with focus on critical care patients.

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Member Avatar ruinas (46.52) Submitted: 10/11/2010 11:16:44 AM : Outperform Start Price: $13.55 MDCO Score: +3.67

Improving profits in current environment plus recent FDA approval of new product.

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Member Avatar Magnet0 (88.20) Submitted: 5/13/2009 5:50:39 PM : Outperform Start Price: $7.22 MDCO Score: +99.92

quality company, took a fatty nose dive

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Member Avatar escarzamd (66.60) Submitted: 5/31/2008 2:26:29 PM : Outperform Start Price: $18.25 MDCO Score: -18.09

Hearing good things from cardiologists about Angiomax. recent support from journals. Could be a combo w/BMY for cath patients. No debt on board, so if this drug hits.......the stock could go out of the yard.

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Member Avatar popsstocs (< 20) Submitted: 9/8/2007 3:39:10 PM : Outperform Start Price: $16.47 MDCO Score: +0.42

I have made some good profits off this CO.I guess it makes all that money from selling all those expensive medications,but what ever,It does me good and I played it again,and its already on its way to do ole pops right again.

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Member Avatar StocksdatROCK (< 20) Submitted: 9/4/2007 7:53:25 PM : Outperform Start Price: $16.81 MDCO Score: -0.85

Has the worlds favorite item and to many customers

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Member Avatar almond9090 (48.26) Submitted: 8/17/2007 5:43:16 AM : Outperform Start Price: $16.50 MDCO Score: -0.84

Consistent steady growth with well-established product should slightly outperform the market.

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Member Avatar aaroger (81.60) Submitted: 7/27/2007 10:45:14 AM : Outperform Start Price: $17.21 MDCO Score: -4.15

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