NEW YORK (TheStreet) -- Medivation (MDVN) stock is down by 12.58% to $36.06 in mid-morning trading on Tuesday, after a group of Democratic legislators criticized the price of the bio-pharmaceutical company's prostate cancer drug.
A group of legislators, including Democratic presidential candidate Bernie Sanders, wrote in a letter to the National Institutes of Health that the cost of the company's drug should be reduced, Reuters reports.
The letter asks the NIH to hold a public hearing on the drug.
"The United States government should use every tool available to lower outrageously high prescription drug prices," Sanders said in the letter. "NIH has the power to stop this blatant profiteering and put the pharmaceutical industry on notice that the era of charging unconscionable prices must end."
Additionally, the company announced on Monday that former healthcare investment banker Jennifer Jarrett would replace Rick Bierly as CFO on July 15. Bierly is retiring after serving as CFO for two years.
Jarrett previously served as a managing director at Citigroup (C), where she oversaw a life sciences and biotechnology investment banking group, the company said in a statement.
Separately, recently, 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 articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C+. The company's strengths can be seen in multiple areas, 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