Why The Medicines Company Shares Soared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of medical solutions provider The Medicines Company soared as much as 13% following the announcement of phase 3 trial results for its blood thinner cangrelor.
So what: As you might infer from today's big pop, the results of this late-stage trial were positive. Canreglor -- which is being tested to prevent platelet activation and aggregation, with a specific focus on patients undergoing percutaneous coronary intervention -- met both the safety and efficacy endpoints of the Champion Phoenix trial. Specifically, The Medicines Company notes that there was a statistically significant improvement over clopidogrel. You may know clopidogrel better by its branded name, Plavix, which is manufactured by Bristol-Myers Squibb .
Now what: The Medicines Company now expects to submit this data in both the U.S. and European Union for eventual approval of cangrelor at some point in 2013. At roughly 19 times forward earnings, it isn't nearly as attractive as it had been in recent months, but with the addition of cangrelor to the mix, The Medicines Company could be a medical solutions company worth keeping an eye on.
Craving more input? Start by adding The Medicines Company to your free and personalized watchlist so you can keep up on the latest news with the company.
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