The Medicines Company (NASDAQ:MDCO)
A pharmaceutical company provides innovative, cost effective acute care hospital products to the worldwide hospital marketplace.
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more upside likely
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Long term buy.
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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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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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low PEG, strong price uptrend
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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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Improving profits in current environment plus recent FDA approval of new product.
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quality company, took a fatty nose dive
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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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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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Has the worlds favorite item and to many customers
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Consistent steady growth with well-established product should slightly outperform the market.
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TheStreet.com: "There still seems to be a lot of hope built into the stock price. As Morgan Stanley analyst Stephen Herr wrote this week, "if the patent life is not extended, this stock looks broadly overvalued."
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Shares of the Medicines Co. (NASDAQ:MDCO - News) fell 10 percent on Monday after the U.S. Congress failed to enact a bill that would have helped the company's bid to extend a patent on its flagship drug Angiomax, a blood thinner.
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their primary anticoagulant medicine is being used increasingly in the cardiology community for increased safety considerations and their next medicine in the pipeline may be even bigger
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