Guggenheim Starts Coverage on The Medicines Company (MDCO) With An Initial Rating Of “Buy”


The Medicines Company (NASDAQ:MDCO).

July 17 investment analysts at Citigroup left the company rating at “Neutral” and raised the price target to $43.00 from $32.00. On July 26 Citigroup kept the company rating at “Neutral” but raised the price target from $43.00 to $45.00.

On August 14 Citigroup kept the stock rating at “Neutral” but lowered the price expectation from $45.00 to $44.00.

The company is trading down by 0.48%% since yesterday’s close of 33.13. The stock is trading at $32.97 just a bit lower than the 50 day moving average of $35.76 and quite a bit lower than the 200 day moving average of $39.90. The 50 day moving average was down by -7.79% and the 200 day average went down by -17.36%.

The Medicines Company, launched on July 31, 1996, is a global biopharmaceutical company. The Company is focused on advancing the treatment of acute and intensive care patients through the delivery of medicines to the hospital marketplace around the world. It markets Angiomax (bivalirudin), Ionsys (fentanyl iontophoretic transdermal system), Minocin (minocycline) for injection and Orbactiv (oritavancin). It also has a pipeline of products in development, including Carbavance, inclisiran and MDCO-700. Carbavance is used for the treatment of hospitalized patients with gram-negative bacterial infections. Inclisiran is used for the treatment of hypercholesterolemia. MDCO-700 includes sedative-hypnotic, which is used to induce and maintain sedation for procedural care and general anesthesia for surgical care. In addition to these products and products in development, it has a portfolio of generic drugs..

As of the last earnings report the EPS was $-10.00 and is expected to be $-9.66 for the current year with 71,917,000 shares currently outstanding. Next quarter’s EPS is forecasted at $-1.26 with next year’s EPS anticipated to be $-4.19.

Investors are feeling more bullish recently if you take into consideration the decrease in short interest. The firm recorded a fall in short interest from September 15, 2017 to September 29, 2017 of -4.71%. Short shares fell from 18,734,383 to 17,851,814 over that period. With short interest at 17,851,814 and short average daily volume at 1,092,613, days to cover is 16.0 and the percentage of shorted shares was 0.25% on September 29.