Company Update (NASDAQ:MDVN): Medivation Inc to Redeem Outstanding Convertible Notes Due 2017

Medivation Inc (NASDAQ:MDVN) announced that it has issued a notice of redemption to redeem on July 24, 2015 all of its outstanding 2.625% Convertible Notes due 2017 (the “Notes”). As of June 18, 2015, $167.7 million of the Notes was outstanding. The last reported sale price of Medivation’s common stock was $116.62 per share on June 18, 2015.

The notice of redemption provides that the Notes called for redemption would be redeemed at a stated redemption price equal to 100% of the aggregate principal amount of such Notes, plus accrued and unpaid interest to (but not including) the redemption date.

Holders may convert the Notes at any time prior to the close of business on July 22, 2015 at a conversion rate of 19.5172 shares of Medivation’scommon stock per $1,000 principal amount of Notes (which is equivalent to a conversion price of approximately $51.24 per share) with a related Conversion Period (as defined in the Indenture for the Notes) of June 23, 2015 through July 21, 2015. Holders who want to convert their Notes must satisfy the requirements set forth in Article 5 of the Indenture for the Notes. In the event that holders elect to convert their Notes in connection with the redemption, the Company will satisfy its conversion obligations to holders by paying cash equal to the principal amount of the Notes and any conversion obligation in excess of the principal amount will be paid in shares of Medivation’s common stock.

Medivation’s notice to holders specifying the terms, conditions and procedures for the redemption and/or conversion is available through The Depository Trust Company and the Trustee, Wells Fargo Bank, National Association.

Wells Fargo Bank, National Association, in their capacity as either paying agent for the redemption or conversion agent, can be contacted at 1-800-344-5128. (Original Source)

Shares of Medivation closed yesterday at $116.62 . MDVN has a 1-year high of $141.58 and a 1-year low of $69.11. The stock’s 50-day moving average is $121.91 and its 200-day moving average is $117.31.

On the ratings front, Medivation has been the subject of a number of recent research reports. In a report issued on June 4, Maxim Group analyst Jason Kolbert reiterated a Buy rating on MDVN, with a price target of $168, which represents a potential upside of 44.1% from where the stock is currently trading. Separately, on June 2, Brean Murray Carret’s Jonathan Aschoff maintained a Buy rating on the stock and has a price target of $142.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason Kolbert and Jonathan Aschoff have a total average return of 2.3% and 13.5% respectively. Kolbert has a success rate of 42.1% and is ranked #1331 out of 3635 analysts, while Aschoff has a success rate of 58.3% and is ranked #139.

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 represents a potential upside of 24.0% from where the stock is currently trading.

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.