If you missed the

Cougar Biotechnology

( CGRB) takeout, take a look at

Medivation

(MDVN)

.

The $900 million or so

Johnson & Johnson

(JNJ) - Get Report

is shelling out to buy Cougar highlights the good value to be had right now in Medivation, which has both an Alzheimer's drug in phase III trials (partnered with

Pfizer

(PFE) - Get Report

)

and

a prostate cancer drug similar to Cougar's abiraterone moving soon into phase III studies.

And you get all that from Medivation for a market cap of $640 million.

Medivation owns 100% rights to its prostate cancer drug MDV3100 but is seeking a partner. Thursday, J&J just set a mighty high sales comp for phase III prostate cancer drugs.

Medivation, with two drugs in phase III studies, is worth more.

Abiraterone and MDV3100 are similar drugs that work by starving prostate cancer cells of testosterone produced naturally in the body. Testosterone helps prostate cancer grow, so cutting off the hormone can help arrest tumor growth. The difference between the two drugs is that abiraterone shuts down testosterone production at the adrenal gland while MDV311 blocks a testosterone receptor on the surface of prostate cancer cells.

In separate phase II studies, patients treated with both drugs revealed evidence of anti-tumor activity, although neither drug has yet been shown to prolong survival.

Cougar began phase III studies of abiraterone last year. One study is testing the drug in men with a very advanced prostate cancer that continues to grow even after treatment with chemotherapy. The second phase III study is enrolling men with less advanced disease -- those for whom hormonal (anti-testosterone) therapy has stopped working but who have not tried chemotherapy.

Medivation plans to begin its own phase III studies of MDV3100 in the same prostate cancer patient populations later this year.

On a related note,

OncoGenex Pharmaceuticals

(OGXI)

is testing its prostate cancer drug

OGX-011

in a phase II study in combination with chemotherapy.

Dendreon

(DNDN)

is seeking approval for its prostate cancer vaccine

Provenge

in men who have progressed off hormonal therapy but have not yet begun chemotherapy.

Medivation CEO David Hung negotiated one of the

biggest partnership deals

of 2008 when Pfizer bought worldwide commercial rights to Dimebon, Medivation's Alzheimer's drug.

Now that J&J has put a $900 million valuation on abiraterone, Hung has something to shoot for as he works to secure a new partnership for MDV3100.

Adam Feuerstein writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback;

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