Medivation announced in its fourth-quarter earnings report that it expects revenue from its prostate cancer treatment Xtandi to land in the range of $500 million and $535 million for the fiscal year 2014. This came up well short of analysts' estimates of $683 million for the pill, which received approval in 2012 for men whose cancer has spread despite treatment with the chemotherapy drug docetaxel. Jefferies, which expected a full-year revenue total of $866 million, downgraded Medivation to "hold" and reduced its target price to $80 from $89.
Medivation is studying Xtandi as a potential treatment for patients prior to chemotherapy, which would broaden its use and should boost sales.
The weak guidance accompanied earnings that beat analysts' expectations. Medivation earned $2.8 million, or 3 cents a share, up from a loss of $31.7 million, or 43 cents a share, in the same period a year earlier. Collaboration revenue surged to $96.6 million from $37.2 million. Analysts called for a loss of 7 cents a share on $73.6 million in revenue.
TheStreet Ratings team rates MEDIVATION INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about its recommendation: