Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nasdaq  >  The Medicines Company    MDCO


News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Medicines : Novartis eyes Medicines Co to boost cardio franchise - report

share with twitter share with LinkedIn share with facebook
share via e-mail
11/19/2019 | 09:02am EST
FILE PHOTO: Swiss drugmaker Novartis' logo is seen in Stein

Novartis is considering an offer for U.S. biotechnology firm The Medicines Co, Bloomberg reported on Tuesday, a deal that could broaden the Swiss drugmaker's cabinet of heart medicines and shore up growth threatened by patent expirations.

Novartis, which declined to comment on the report, is hunting for a $5 billion (£4 billion) acquisition in the United States, two banking sources told Reuters separately without identifying a target.

New Jersey-based The Medicines Co's top drug candidate is cholesterol-lowering drug inclisiran for heart patients. Novartis has historically had a strong cardiovascular drug franchise, but lost ground when Diovan, once a $6 billion-per-year seller, lost patent protection in 2012 and left the company without an immediate, innovative follow-up product.

Novartis has since been building up its portfolio, which now includes Entresto, a $1 billion seller for heart failure, as well as an experimental RNA-targeting molecule from Ionis Pharmaceuticals that it licensed earlier this year for $150 million.

The Medicines Co has a market capitalisation of nearly $4.7 billion after the shares have more than tripled in value this year.

Novartis Chief Executive Vas Narasimhan has been pursuing bolt-on acquisitions of up to 5% of the company's market capitalisation, or $10 billion.

Some analysts have said Novartis's hunger for deals -- it has made several billion-dollar-plus purchases since 2018, including the $8.7 billion buyout of gene therapy specialist AveXis -- is borne of necessity.

With patents nearing expiration on Lucentis, for macular degeneration, iron overload medicine Exjade and $3.3 billion-per-year MS drug Gilenya, reliable revenue sources may soon be under siege from generics or biosimilar copies.

"We expect that 50% of 2018 group sales will lose patent protection before 2026," Bank Vontobel analyst Stefan Schneider said in a note to investors in August. "Since R&D does not provide sufficient growth, bolt-on acquisitions are required."

Earlier this year, Narasimhan paid up to $5.3 billion for Takeda's dry eye drug Xiidra. With AveXis, he added the gene therapy Zolgensma, now the highest-priced one-time treatment at $2.1 million, for spinal muscular atrophy.

He also bought U.S.-based Endocyte last year for $2.1 billion, and France's Advanced Accelerator Applications for $3.9 billion earlier in the year to build out Novartis's arsenal of medicines to target cancer using radioactive substances.

(Reporting by John Miller in Zurich, Arno Schuetze in Frankfurt, Gregory Roumeliotis in New York and Pamela Barbaglia in London; Editing by Michael Shields and Jane Merriman)

Stocks mentioned in the article
ChangeLast1st jan.
NOVARTIS 0.93% 91.28 Delayed Quote.22.87%
THE MEDICINES COMPANY 0.37% 84.21 Delayed Quote.339.97%
share with twitter share with LinkedIn share with facebook
share via e-mail
12/02Monteverde & Associates PC Announces an Investigation of THE MEDICINES COMPAN..
11/26WeissLaw LLP Investigates The Medicines Co.
11/25World share markets rally on revived trade hopes; dollar gains
11/25World share markets rally on revived trade hopes; dollar gains
11/25THE MEDICINES COMPANY ALERT : Bragar Eagel & Squire, P.C. Investigates the Propo..
11/25EUROPE : Transatlantic dealmaking sends European shares back to four-year peak
11/25The Medicines Co. Shares Up 23% on Novartis Buyout Offer
11/25BLACK FRIDAY FRENZY : Tiffany buys LVMH, Charles Schwab buys TD Ameritrade, Nova..
11/25(MDCO) ALERT : Johnson Fistel Investigates Proposed Sale of The Medicines Compan..
11/25ALNYLAM PHARMACEUTICALS : Announces 2020 Product and Pipeline Goals and Provides..
More news
Financials (USD)
Sales 2019 1,37 M
EBIT 2019 -208 M
Net income 2019 -261 M
Debt 2019 616 M
Yield 2019 -
P/E ratio 2019 -25,4x
P/E ratio 2020 -22,9x
EV / Sales2019 5 362x
EV / Sales2020 228x
Capitalization 6 732 M
Duration : Period :
The Medicines Company Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends THE MEDICINES COMPANY
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 12
Average target price 80,64  $
Last Close Price 84,21  $
Spread / Highest target 12,8%
Spread / Average Target -4,24%
Spread / Lowest Target -40,6%
EPS Revisions
Clive A. Meanwell Chief Innovation Officer & Director
Mark Timney Chief Executive Officer & Director
Alexander John Denner Chairman
Christopher Visioli Chief Financial Officer & Treasurer
John C. Kelly Independent Director
Sector and Competitors