) reported a fourth-quarter loss of 43 cents per share, narrower
than the Zacks Consensus Estimate of a loss of 51 cents per share
but well above the year-ago loss of 15 cents per share.
Revenues came in at $37.2 million, above the Zacks Consensus
Estimate of $32 million and the year-ago revenues of $14.9
Full year loss of 56 cents per share remained flat from the
year-ago period and narrower than the Zacks Consensus Estimate of
a loss of 66 cents per share. Revenues came in at $181.7 million,
well above the Zacks Consensus Estimate of $170 million and the
year-ago revenues of $60.4 million.
The Quarter in Detail
Xtandi delivered net sales of $57.4 million in its first full
quarter since launch. Xtandi is approved for the treatment of
patients with metastatic castration-resistant prostate cancer who
have previously received docetaxel. Xtandi is currently under
regulatory review in the EU with a decision expected this
Operating expenses increased 137.5% to $63.9 million. Research
and development expenses increased 22.4% to $22.0 million.
SG&A expenses increased 367.2% to $41.9 million.
Medivation expects operating expenses (after adjusting
cost-sharing payments) in the range of $285-$300 million.
Medivation expects capex of about $7 million, especially
connected with its new headquarters.
Medivation currently carries a Zacks Rank #2 (Buy). We are
impressed with Xtandi's performance in its first full quarter
following the product launch and we expect the strong ramp to
continue. Medivation has consistently presented impressive data
on Xtandi. Based on the data we have seen so far, we believe that
the product has blockbuster potential.
Xtandi could very well be a game-changer for Medivation. The
prostate cancer market represents huge commercial potential.
Xtandi is currently in several studies including studies for the
pre-chemo setting, which represents huge commercial potential.
Expansion into the pre-chemo setting would be a major positive
for the stock. Medivation is also exploring Xtandi for breast
cancer (phase I).
Medivation currently carries a Zacks Rank #2 (Buy).
Array BioPharma, Inc.
Kythera Biopharmaceuticals, Inc.
) also look attractive with a Zacks Rank #2 (Buy). Other
biopharma stocks that currently look more attractive include
), which is a Zacks Rank #1 (Strong Buy) company.
ARRAY BIOPHARMA (ARRY): Free Stock Analysis
CYTOKINETCS INC (CYTK): Free Stock Analysis
KYTHERA BIOPHRM (KYTH): Free Stock Analysis
MEDIVATION INC (MDVN): Free Stock Analysis
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