Shares of biopharma company Medivation are soaring on takeover talk, although the company claims it has no plans to put itself up for sale, TheStreet TV anchor Rhonda Schaffler reports in the above video.
NEW YORK (TheStreet) -- Medivation (MDVN) stock is surging by 20.14% to $44.92 on heavy trading volume this morning, as the biopharmaceutical company works with investment bank JPMorgan on handling takeover approaches, sources told Reuters.
However, the company has no plans to sell itself, Reuters adds.
Biopharmaceutical companies often receive takeover interest from larger competitors, but mergers rarely happen without the target company's cooperation.
The names of the interested parties were not disclosed, but Sanofi (SNY), Roche Holding (RHHBY) and AstraZeneca (AZN) are among the pharmaceutical companies that have previously expressed interest in purchasing U.S. rivals, according to Reuters.
About 8.43 million shares of the company have been traded so far today, well above Medivation's average trading volume of roughly 3.02 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
Medivation's strengths such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.
You can view the full analysis from the report here: MDVN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.