Janney Reiterates Buy On Medivation Following Astellas’ Xtandi Sales Report; Sees $110 Fair Value
In a research report issued Friday, Janney Capital analyst Kimberly Lee reiterated a Buy rating on Medivation Inc. (MDVN) with a $110 fair value estimate, following Medivation’s partner Astellas (ALPMY) second quarter results that included US Xtandi sales of approximately $148 million, which beat Lee’s estimate of $132 million, and ex-US sales of approximately $80 million versus the analyst $50 million.
Lee wrote, “This points to continued strong growth in the US and we expect EU growth to continue to ramp this year. Based on Astellas’ earnings release, we anticipate MDVN will beat on the top-line when it reports earnings on August 7th”. She continued, “On the earnings call, we anticipate clarity on the reasons behind robust revenue growth, which we believe could be attributed to demand in the pre-chemo setting as well as continued penetration in the post-chemo setting. We also believe that management could upwardly revise its previous Xtandi revenue guidance but think this will more likely happen on its 4Q earnings call post pre-chemo label expansion”.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform analyst Kimberly Lee has a 4.3% average return and a 44.0% success rate. Lee has a 28.0% average return when recommending MDVN, and is ranked #1341 out of 3195 analysts.
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