The San Francisco-based biopharmaceutical company is focused on the development and commercialization of therapies to treat serious diseases for which there are limited treatment options.
"We believe Xtandi growth is slowing based on recent IMS weekly scrip trends and quarterly sales. While we believe Medivation continues to make inroads with the urologist prescriber base, which now accounts for 20% of total Xtandi scrips, we believe Xtandi may have peaked in the pre-chemo, post-Casodex treatment line," the firm wrote in a note.
The company's Xtandi (Enzalutamide) is for the treatment of patients with metastatic castration-resistant prostate cancer (CRPC), and is being further developed for earlier stages of prostate cancer, advanced breast cancer and hepatocellular carcinoma, a liver cancer.
Shares of Medivation closed up by 1.08% to $45.73 on Tuesday.
Separately, TheStreet Ratings Team has a Hold rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed.
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, the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.
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.
You can view the full analysis from the report here: MDVN