The Medicines Company (MDCO) Rating Lowered to Strong Sell at Zacks Investment Research
The Medicines Company (NASDAQ:MDCO) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday.
According to Zacks, “The Medicines Co. recently received FDA approval of Vabomere which is a huge positive for the company given the lucrative market it targets. The company also has a blockbuster candidate, Inclisiran, in its portfolio. However, we await a clearer picture of the commercial potential of Vabomere and Inclisiran, if approved. The company’s shares have underperformed the industry so far this year. The company is facing generic competition for its flagship product, Angiomax. With Angiomax sales eroding due to presence of generics, the company’s ability to successfully develop and bring new products to the market is important for growth. Any regulatory setbacks would weigh heavily on the stock. Meanwhile, loss estimates have widened ahead of the company's Q3 earnings results. The company has a negative record of earnings surprises in recent quarters.”
MDCO has been the subject of several other research reports. Chardan Capital reiterated a “buy” rating and issued a $85.00 price objective (up previously from $80.00) on shares of The Medicines in a research note on Tuesday, August 29th. Jefferies Group LLC reiterated a “buy” rating and issued a $54.00 price objective on shares of The Medicines in a research note on Thursday, September 14th. Citigroup Inc. lifted their price objective on shares of The Medicines from $43.00 to $45.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 26th. Oppenheimer Holdings, Inc. set a $50.00 price objective on shares of The Medicines and gave the stock a “hold” rating in a research note on Thursday, August 17th. Finally, TheStreet cut shares of The Medicines from a “c-” rating to a “d” rating in a research note on Wednesday, August 9th. Two analysts have rated the stock with a sell rating, two have given a hold rating and eight have assigned a buy rating to the stock. The stock has a consensus rating of “Buy” and an average target price of $54.00.
The Medicines (NASDAQ:MDCO) last issued its quarterly earnings data on Wednesday, August 9th. The company reported ($5.52) earnings per share for the quarter, missing the consensus estimate of ($1.29) by ($4.23). The Medicines had a negative return on equity of 137.20% and a negative net margin of 670.46%. The business had revenue of $18.74 million during the quarter, compared to analyst estimates of $29.64 million. During the same quarter last year, the firm earned ($0.62) EPS. The Medicines’s revenue for the quarter was down 65.8% compared to the same quarter last year.
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A number of hedge funds have recently added to or reduced their stakes in MDCO. PNC Financial Services Group Inc. increased its holdings in The Medicines by 341.2% in the 1st quarter. PNC Financial Services Group Inc. now owns 2,109 shares of the company’s stock valued at $104,000 after buying an additional 1,631 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in The Medicines by 10.6% in the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,753 shares of the company’s stock valued at $105,000 after buying an additional 264 shares during the period. Envestnet Asset Management Inc. increased its holdings in The Medicines by 5.1% in the 1st quarter. Envestnet Asset Management Inc. now owns 2,496 shares of the company’s stock valued at $122,000 after buying an additional 120 shares during the period. US Bancorp DE increased its holdings in The Medicines by 1.7% in the 1st quarter. US Bancorp DE now owns 3,413 shares of the company’s stock valued at $167,000 after buying an additional 58 shares during the period. Finally, First Mercantile Trust Co. increased its holdings in The Medicines by 2.5% in the 2nd quarter. First Mercantile Trust Co. now owns 4,767 shares of the company’s stock valued at $181,000 after buying an additional 114 shares during the period.
About The Medicines
The Medicines Company is a global biopharmaceutical company. The Company is focused on advancing the treatment of acute and intensive care patients through the delivery of medicines to the hospital marketplace around the world. It markets Angiomax (bivalirudin), Ionsys (fentanyl iontophoretic transdermal system), Minocin (minocycline) for injection and Orbactiv (oritavancin).
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