The Medicines Company (MDCO): Inclisiran Shows Momentum on Longer-Term Data, Oppenheimer Weighs in

Yesterday, at the European Society of Cardiology (ESC) Congress 2017 in Barcelona, The Medicines Company (NASDAQ:MDCO) unveiled positive one-year data from the 501-patient phase II ORION-1 trial of RNAi drug and PCSK9 inhibitor, inclisiran, in hypercholesterolemia. According to the company, the results re-affirm inclisiran’s unique and highly-differentiated attributes, and its game-changing potential to address the unmet needs of millions of at-risk patients worldwide.

Oppenheimer analyst Jay Olson notes, “Potentially best-in-class profile to be fully explored in extensive Ph 3 program that includes LDL-C lowering trials in patients with atherosclerotic cardiovascular disease (ASCVD), ASCVD risk-equivalent and familial hypercholesterolemia expected to start by YE17, read-out in 1H19, collectively enroll a total of 3,400 subjects and cost between $110M and $150M. A 14K-patient CV outcomes trial could conclude in 2022.”

However, with a financing overhang, Olson remains sidelined on MDCO. The analyst reiterates a Perform rating on the stock, with a price target of $50, which represents a potential upside of 29% from today’s closing price. “MDCO is committed to monetizing the ID business by YE as non-dilutive financing for development of inclisiran, yet we remain Perform rated pending an actual deal,” Olson opines. (To watch Olson’s track record, click here)

Where does the rest of the Street side on this drug maker? It appears mostly bullish, as TipRanks analytics demonstrate MDCO as a Strong Buy. Out of 5 analysts polled in the past 3 months, 4 are bullish on the stock while only 1 remains sidelined. With a return potential of nearly 48%, the stock’s consensus target price stands at $56.00.


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