Zacks Investment Research downgraded shares of The Medicines Company (NASDAQ:MDCO) from a hold rating to a strong sell rating in a research report report published on Tuesday morning.
According to Zacks, “The Medicines Co. recently received FDA approval of Vabomere which is a huge positive for the company given the lucrative market it targets. The company also has a blockbuster candidate, Inclisiran, in its portfolio. However, we await a clearer picture of the commercial potential of Vabomere and Inclisiran, if approved. The company’s shares have underperformed the industry so far this year. The company is facing generic competition for its flagship product, Angiomax. With Angiomax sales eroding due to presence of generics, the company’s ability to successfully develop and bring new products to the market is important for growth. Any regulatory setbacks would weigh heavily on the stock. Meanwhile, loss estimates have widened ahead of the company's Q3 earnings results. The company has a negative record of earnings surprises in recent quarters.”
MDCO has been the subject of a number of other reports. Citigroup Inc. decreased their target price on The Medicines from $59.00 to $43.00 and set a neutral rating for the company in a research note on Monday, July 17th. Chardan Capital restated a buy rating and issued a $85.00 target price on shares of The Medicines in a research note on Wednesday, September 20th. Jefferies Group LLC restated a buy rating and issued a $62.00 target price on shares of The Medicines in a research note on Wednesday, June 28th. Oppenheimer Holdings, Inc. set a $50.00 target price on The Medicines and gave the company a hold rating in a research note on Thursday, August 17th. Finally, TheStreet downgraded The Medicines from a c- rating to a d rating in a research note on Wednesday, August 9th. Two equities research analysts have rated the stock with a sell rating, two have given a hold rating and eight have given a buy rating to the company. The Medicines currently has an average rating of Buy and an average target price of $54.00.
The Medicines (NASDAQ:MDCO) last posted its quarterly earnings results on Wednesday, August 9th. The company reported ($5.52) EPS for the quarter, missing the Zacks’ consensus estimate of ($1.29) by ($4.23). The Medicines had a negative return on equity of 137.20% and a negative net margin of 670.46%. The firm had revenue of $18.74 million during the quarter, compared to analyst estimates of $29.64 million. During the same quarter last year, the business posted ($0.62) earnings per share. The firm’s revenue for the quarter was down 65.8% on a year-over-year basis.
Hedge funds and other institutional investors have recently modified their holdings of the company. PNC Financial Services Group Inc. boosted its position in shares of The Medicines by 341.2% during the first quarter. PNC Financial Services Group Inc. now owns 2,109 shares of the company’s stock worth $104,000 after buying an additional 1,631 shares during the period. Envestnet Asset Management Inc. boosted its position in shares of The Medicines by 5.1% during the first quarter. Envestnet Asset Management Inc. now owns 2,496 shares of the company’s stock worth $122,000 after buying an additional 120 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank boosted its position in shares of The Medicines by 10.6% during the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,753 shares of the company’s stock worth $105,000 after buying an additional 264 shares during the period. US Bancorp DE boosted its position in shares of The Medicines by 1.7% during the first quarter. US Bancorp DE now owns 3,413 shares of the company’s stock worth $167,000 after buying an additional 58 shares during the period. Finally, Miles Capital Inc. acquired a new position in shares of The Medicines during the first quarter worth approximately $208,000.
The Medicines Company Profile
The Medicines Company is a global biopharmaceutical company. The Company is focused on advancing the treatment of acute and intensive care patients through the delivery of medicines to the hospital marketplace around the world. It markets Angiomax (bivalirudin), Ionsys (fentanyl iontophoretic transdermal system), Minocin (minocycline) for injection and Orbactiv (oritavancin).
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