The Medicines Company (MDCO) Climbs On Positive Data

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The Medicines Company (NASDAQ: MDCO)

The Medicines company is having an incredible day in the market today after announcing data from its recent study looking into ALN-PCSsc, a new cholesterol drug. Today, we’ll talk about the data that was released, how it has affected the market so far today, and what we can expect to see from MDCO moving forward. So, let’s get right to it…

The Medicines Company Releases Positive Data

The Medicines Company offered data this morning from its Phase 1 study that looked into the effectiveness of ALN-PCSsc with regard to reducing “bad” cholesterol. The data released showed that the drug is incredibly effective in reducing LDL-C – “bad” cholesterol. As a matter of fact, after administration of the drug, patients involved in the Phase 1 study showed a reduction in LDL-C of up to 83%. During the announcement of the data, The Medicines Company Vice President and global medical director had the following to say…

…we imagine that ALN-PCSsc has the potential to open new innovation horizons with patients, providers, and payers by linking the temporal cycle of LDL-C monitoring with administration therapy,”

All in all, the data that was released today was overwhelmingly positive.

How The Market Reacted

As we’ve come to expect any time a biotechnology company releases positive data with regard to an experimental medication, MDCO is having a great day in the market today. Currently (12:18), the stock is trading at $39.49 per share after a gain of 17.39% so far.

What We Can Expect To See Moving Forward

Personally, I’ve got two conflicting views as to what to expect from the stock moving forward depending on how far in the future you plan to look….

  • Tomorrow – If you only plan to follow the stock until the end of the day tomorrow, look out for declines. The reality is that price movements in the market tend to happen through a series of overreactions. Therefore, the massive gains we’re seeing today are likely an overreaction pushing the stock far higher than it should be headed. So, tomorrow, we can expect to see a correction on MDCO bringing it down to a more sustainable rate before growth continues.

  • Long Term – If you plan to look at the long term, I think that the overall trend you’re going to see is going to be positive. The new information with regard to the company’s experimental drug is promising. Therefore, The Medicines Company is likely to start Phase 2 trials relatively soon, and if they are as positive as Phase 1 trials have been, this is likely to be another catalyst. All in all, things are looking up for MDCO in my opinion.

What Do You Think?

Where do you think MDCO is headed and why? Let us know in the comments below!

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