Medicines Co. Heart Drug Data Backs Bullish Wall Street Hope

(Bloomberg) -- Medicines Co. rallied as much as 13% on Tuesday as Wall Street applauded late-stage data of its cholesterol drug and turned its focus to a pair of results due this month.

The results “should largely resolve any remaining bear concerns around inclisiran safety” and further drive Baird analyst Madhu Kumar’s conviction. “We believe these results show inclisiran has good efficacy and safety,” Kumar, who holds a Street-high $100 price target, wrote in a note to clients.

Medicines Co. shares have surged nearly 150% this year and opened at the highest since May 2017. The results bode well for Alnylam Pharmaceuticals Inc. as it receives milestone payments related to inclisiran and would get royalties on sales while its pipeline is built on drugs that work in a similar way. Alnylam shares climbed 5% to the highest since May.

Analysts expect further datasets will reaffirm optimism on the drug’s prospects to compete with already approved drugs from Amgen Inc. and partners Sanofi and Regeneron Pharmaceuticals Inc. Shares of Amgen dipped as much as 1% while Regeneron slipped 0.7%.

Here’s more of what Wall Street had to say about the results:

SVB Leerink, Joseph Schwartz

“First in a series of highly anticipated pivotal Ph.3 readouts for inclisiran, today’s better-than-expected results reaffirm our optimism for the upcoming ORION-9 and -10 readouts in the second half of 3Q19.”

Data reinforce inclisiran as a “a potential front-runner in the PCSK9 space,” a type of medicine sold by Amgen and Sanofi and Regeneron.

Rates shares at outperform and maintains $61 price target.

Citi, Joel Beatty

Data increase probability of success to ~100% from 80% as results suggest “inclisiran is comparable on safety and efficacy to the approved PCSK9 antibody agents.”

“Inclisiran also looked comparable to placebo on liver function tests and other measures, adding further support on safety.”

Maintains buy and boosts price target to $55 from $48 which would equate to a $5.6 billion valuation assuming 101 million outstanding shares.

Cowen, Chris Shibutani

“An exploratory analysis of CV endpoints favored inclisiran, strengthening confidence in results for the ongoing ORION-4 CV outcomes trial.”

Efficacy results were positive and in line with expectations; “continue to see the issue of efficacy as largely derisked and expect to see similar levels of LDL-C reductions (~50%) when results for ORION-9 and -10 are presented at some point before the end of 3Q.”

Baird, Madhu Kumar

“Bear concerns around MDCO’s convertible debt has been at least partially mitigated, with further near-term upside likely undercutting this further. As such, we continue to view ORION-9/10 readouts as likely positive catalysts for MDCO shares.”

“We have conviction in inclisiran’s success in ongoing pivotal trials.”

Maintains outperform rating and “Fresh Pick” status; reiterates Street-high $100 price target.

To contact the reporter on this story: Bailey Lipschultz in New York at blipschultz@bloomberg.net

To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Courtney Dentch, Scott Schnipper

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