Andreas Halvorsen Buys 2 Million Shares of Medivation
Medivation Inc. is a biopharmaceutical company that acquires promising technologies in the late preclinical development phase and develops them quickly and cost-effectively. Medivation Inc. has a market cap of $3.53 billion; its shares were traded at around $94.65 with and P/S ratio of 58.5.
Medivation had a stellar year, its stock price rising 509%. The stock price more than doubled in November 2011 when the company announced positive results from its planned interim analysis of a Phase 3 AFFIRM trial of MDV3100, a treatment for men with advanced prostate cancer previously treated with chemotherapy. The treatment demonstrated a clinically significant improvement in overall survival rate compared to placebo.
On July 24, the FDA granted Enzalutamide (formerly MDV3100) priority review designation, which triggered a $10 million milestone payment from its collaborator on the drug, Astrellas. The drug could potentially be launched in the U.S. this year.
Medivation’s revenues have been declining annually since 2009, falling to $60.4 million in 2011. The company has yet to turn a profit and has approximately $360 million in cash on its balance sheet, with $222 in long-term liabilities and no debt.
GuruFocus Real Time Picks alerts you for the stock purchases and sales that Gurus have made within the last two days. Follow your favorite Gurus closely with GuruFocus' Premium Membership! If you are not a Premium Member, we invite you for a 7-Day Free Trial.