We recently reiterated a Neutral recommendation on
). Medivation received a major boost in late August when the FDA
approved its prostate cancer treatment, Xtandi, several months
ahead of the target date. Xtandi, which was launched in the US in
September, could very well be a game-changer for Medivation.
Xtandi is approved for the treatment of patients with metastatic
castration-resistant prostate cancer who have previously received
The prostate cancer market represents huge commercial
potential and Xtandi is already off to a strong start. Xtandi,
which was launched on September 13, delivered net sales of $14.1
million. Medivation has consistently presented impressive data on
Xtandi. Based on the data we have seen so far, we believe the
product has blockbuster potential.
We also view Medivation's collaborative agreement with
) as favorable. Not only has the agreement brought in cash,
Astellas' strong presence in the urology market should be a major
boon for Medivation.
However, we remain concerned about Medivation's dependence on
just Xtandi for growth. Xtandi is currently in several studies
including studies for the pre-chemo setting. Disappointing data
from any of these studies would have a negative impact on the
Meanwhile, although the prostate cancer market provides
immense commercial potential, we note that companies like
Johnson & Johnson
) already have a strong presence in the market.
Medivation currently carries a Zacks #3 Rank (Hold). We expect
investor focus to remain on the commercialization of Xtandi.
While Sanofi and Johnson & Johnson also carry a Zacks #3
Rank, Astellas Pharma carries a Zacks #1 Rank (Strong Buy).
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