Medivation Inc (NASDAQ:MDVN) and BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) announced that they have entered into an asset purchase agreement under which Medivation will acquire all worldwide rights to talazoparib (formerly referred to as BMN 673), a highly-potent, orally-available poly ADP ribose polymerase (PARP) inhibitor currently in a Phase 3 study for the treatment of patients with deleterious germline BRCA 1 or BRCA 2 mutations and locally advanced and/or metastatic breast cancer. Under the agreement, Medivation will be responsible for all research, development, regulatory and commercialization activities for all indications on a global basis.
“Acquiring all worldwide rights to talazoparib provides Medivation with a transformational opportunity to diversify and expand our proprietary portfolio and global oncology franchise. PARP inhibitors are an exciting class of oncology therapeutics that have been associated with promising activity across multiple tumor types, including breast and prostate cancer. These latter two disease indications are areas in which Medivation has proven expertise and development capabilities and in the case of prostate cancer, an established and successful commercial presence,” said David Hung, M.D., President and Chief Executive Officer of Medivation. “Talazoparib’s potential to act alone or augment the effects of a wide array of tumor DNA-damaging oncology therapies and its high potency and level of activity in various cancers make talazoparib a great strategic fit for Medivation’s oncology portfolio, building on existing strengths as well as potentially allowing Medivation to expand into new oncology indications.”
“We believe that Medivation is an outstanding company to drive the future development of talazoparib and ensure it reaches its full therapeutic potential,” said Hank Fuchs, M.D., Chief Medical Officer at BioMarin. “Medivation’s expertise and track record in oncology clinical development and commercialization has been well demonstrated by the Company’s success to date. Placing talazoparib in their capable hands allows us to optimize our portfolio and focus our resources on established areas of expertise — developing novel products to treat rare and ultra-rare genetic diseases.”
Under the terms of the agreement, Medivation will pay BioMarin $410 million upfront, up to an additional $160 million upon the achievement of regulatory and sales-based milestones and mid-single digit royalties for talazoparib. At the closing of the transaction, Medivation will assume all financial obligations associated with the development and commercialization of talazoparib.
The closing of the transaction is conditioned on the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is anticipated to close in 2015. (Original Source)
Shares of Medivation closed last Friday at $91.43. MDVN has a 1-year high of $141.58 and a 1-year low of $84.23. The stock’s 50-day moving average is $104.42 and its 200-day moving average is $117.54.
On the ratings front, Medivation has been the subject of a number of recent research reports. In a report issued on August 7, Canaccord Genuity analyst John Newman maintained a Buy rating on MDVN, with a price target of $180, which implies an upside of 96.9% from current levels. Separately, on the same day, Jefferies Co.’s Biren Amin maintained a Hold rating on the stock and has a price target of $118.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John Newman and Biren Amin have a total average return of 3.5% and 9.1% respectively. Newman has a success rate of 43.4% and is ranked #1065 out of 3737 analysts, while Amin has a success rate of 50.0% and is ranked #601.
The street is mostly Bullish on MDVN stock. Out of 9 analysts who cover the stock, 6 suggest a Buy rating and 3 recommend to Hold the stock. The 12-month average price target assigned to the stock is $144.63, which implies an upside of 58.2% from current levels.
Medivation Inc is a biopharmaceutical company engaged in the development of novel small molecule drugs to treat diseases like Alzheimer’s disease and Huntington disease.