According to the analyst this now indicates there is a potential increase of 14.19% from Medivation Inc’s current price of 57.8. There’s also no certainty that Pfizer would forge ahead with an offer, sources say.
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“Consistent with the first quarter of 2015, our first-quarter 2016 non-GAAP net income was impacted by several seasonal items, including the lower royalty rate on ex-U.S. Xtandi sales, the higher gross-to-net (i.e. rebating) accrual by Astellas on U.S.net sales, inventory drawdowns and the previously mentioned SG&A (sales, general & administrative) expenses related to our Astellas collaboration”, Medivation said in its earnings release. Some sell-side analysts, particularly the bearish ones, have called for $37 price targets on shares of Medivation, Inc.
French drugmaker Sanofi has already made an unsolicited, $9.3 billion takeover offer, which Medivation rejected, that valued the company at $52.50 a share.
The Delaware company can have its eight member board removed by written consent. The move comes after 5 months positive chart setup for the $9.55 billion company. “The Exclusive Forum provision is an attempt to avoid litigation in multiple jurisdictions following certain events including M&A announcements”.
Last year, Medivation posted revenue of $943.3 billion, about half of it from Xtandi and the rest from payments from various collaborators. “Overall, we think the ability of a company to enter the growing arena of metastatic castrate-resistant prostate cancer (mCRPC) with a drug as good as Xtandi is relatively unique and we expect any deal to get done at a minimum of about $66 per share with an additional conditional payout for talazoparib”, Stifel analyst Thomas Shrader recently wrote in a research note. The drug was found to near-triple PFS (progression-free survival) data relative to casodex in prostate cancer patients.
Medivation, Inc. (NASDAQ: MDVN) reaffirmed its rejection of Sanofi’s (NYSE: SNY) substantially inadequate proposal to buy the Company for $52.50 per share in cash.
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Sanofi now has no plans to raise its offer and is waiting for Medivation to launch an auction to sell itself before it makes any new bid, some of the people said. Since March 31 (when takeover interest was first reported), Medivation shares have surged by over 55%. The company had revenue of $377.74 million for the quarter, compared to analysts expectations of $372.65 million. The highest analyst price target is $70, which implies a gain of 21 percent. Sanofi’s US shares closed regular trading up 32 cents at $39.07.
