Why Medicines Co. Is Poised to Outperform

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drug developer The Medicines Company has earned a respected four-star ranking.

With that in mind, let's take a closer look at Medicines Co. and see what CAPS investors are saying about the stock right now.

Medicines Co. facts

Headquarters (founded)

Parsippany, N.J. (1996)

Market Cap

$1.8 billion

Industry

Pharmaceuticals

Trailing-12-Month Revenue

$587.7 million

Management

Chairman/CEO Clive Meanwell
President/CFO Glenn Sblendorio

Return on Capital (average, past 3 years)

22.5%

Cash/Debt

$252.1 million / $228.6 million

Competitors

Pfizer


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 89% of the 169 members who have rated Medicines Co. believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, All-Star zzlangerhans, succinctly summed up Medicines Co. bull case for our community:

Angiomax revenues have remained solid, although I'm concerned regarding ongoing litigation with generic manufacturers. Regardless, the drug will only maintain exclusivity through 2019 due to agreements with [Teva Pharmaceutical] and Fresenius. However, the company has now produced a second act for the near term in the form of cangrelor, which recently showed strong superiority to Plavix in the CHAMPION PHOENIX trial. The company is also broadening their approach by inlicensing ALN-PCS RNAi from Alnylam Pharmaceuticals  and purchasing Incline Therapeutics and their Ionsys pain platform. I'm more skeptical about oritavancin, an antibiotic whose prospects failed to keep developer Targanta from being absorbed for a pittance. Nevertheless, positive phase III data from the SOLO-2 trial could give the stock a boost in mid 2013.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Medicines Co. may not be your top choice.

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The article Why Medicines Co. Is Poised to Outperform originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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