Summary:
Medivation posted EPS of $0.96 in the third quarter of 2014, turning around the year-ago loss of $0.18 per share but falling short of the Zacks Consensus Estimate of $1.11 per share. Revenues came in at $200.5 million, up 233.9% from the year-ago period, but missing the Zacks Consensus Estimate of $203 million. Xtandi's performance remains strong with the product recording year-over-year as well as sequential growth in the reported quarter. With Xtandi gaining approval for the pre-chemo population, increased usage among urologists should drive sales further. The prostate cancer market represents huge commercial potential. While optimistic about Xtandi, the company's dependence weak pipeline is a matter of concern. We remain Neutral on the stock.
Overview:
San Francisco based Medivation, Inc. is a biopharmaceutical company that focuses on the development of novel small molecule drugs for the treatment of serious diseases for which there are limited treatment options. Medivation currently has one marketed product Xtandi (enzalutamide), which gained approval from the U.S. Food and Drug Administration (FDA) in late Aug 2012 for the treatment of patients with metastatic castration-resistant prostate cancer (CRPC) who have previously received docetaxel. Xtandi gained approval for use in the pre-chemo patient population in Sep 2014. Xtandi is partnered with Astellas Pharma. Xtandi gained EU approval in Jun 2013.
Medivation recorded $272.9 million in revenues in 2013, up from $181.7 million in 2012.
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