Leerink Partners Analyst Believes Medivation Inc’s (MDVN) New Pipeline Drug May Lead to Another Round of Takeout Bids

Analyst Geoff Porges of Leerink Partners discussed Medivation Inc’s (NASDAQ:MDVN) pipeline drug, talazoparib, after listening into a conference call sponsored by the company.

On the call, Porges learned about recent positive data from Tesaro Inc’s phase III trials of niraparib PARP inhibitor. This data helped increase speculation and interest Medivation’s possible opportunities concerning talazoparib. The call “highlighted talazoparib’s ‘best-in-class’ pre-clinical profile based on its overall potency and distinct PARP-trapping abilities.”

Medivation anticipates a market of $30 billion in the U.S. and Europe for this drug, even though approvals aren’t expected until 2018-2023. Porges thinks that management is hoping that additional data may incite another round of increases in takeout bids.

The analyst maintained his Market Perform rating on Medivation with a price target of $64, marking 3% increase from current levels.

According to TipRanks the analyst has a success rate of 32% with an average loss of -3.2% per recommendation.

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