Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Medivation Inc. Shares Roared Higher

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

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 Medivation (NASDAQ: MDVN  ) , a biopharmaceutical company primarily focused on developing cancer therapies, surged by as much as 11% after reporting its first-quarter results after the closing bell last night.

So what: For the quarter, Medivation and marketing partner Astellas Pharma (NASDAQOTH: ALPMY  ) reported sales growth for prostate cancer drug Xtandi of 65% in the U.S. to $124.5 million and astronomical ex-U.S. growth to $47.8 million from just $0.3 million in the prior year period. Collaboration revenue as it relates to Medivation soared 89% to $87.2 million. Net loss, on the heels of higher Xtandi sales, shrank 50% to $13.7 million or $0.18 per share, from $27.2 million, or $0.36 per share in the year-ago quarter. By comparison, both figures actually missed the Street's forecast of a $0.09 per share loss and $98.4 million in revenue. For the remainder of the year Medivation projected U.S. Xtandi sales would reach $540 million-$575 million.

Now what: Normally a company wouldn't be launching higher after missing Wall Street's top- and bottom-line estimates, but the consensus from analysts seems to be that Medivation was being pretty conservative with its growth guidance for Xtandi for the remainder of the year. In addition, it's not as is Medivation is standing still -- collaborative revenue did jump 89% during the quarter and it halved its net loss. Medivation looks well on its way to becoming profitable and is successfully taking on, and taking down, some fierce competition in the late-stage prostate cancer space. Assuming Xtandi receives the thumbs up from the Food and Drug Administration in a prechemo setting we could really see sales of the therapy take off. In other words, you may want to add Medivation to your watchlist after its recent dip.

Medivation may have soared today, but even it could have a difficult time trying to keep pace with this top stock over the long haul
Give me five minutes and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2951221, ~/Articles/ArticleHandler.aspx, 8/31/2015 2:04:55 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Sean Williams

A Fool since 2010, and a graduate from UC San Diego with a B.A. in Economics, Sean specializes in the healthcare sector and in investment planning topics. You'll usually find him writing about Obamacare, marijuana, developing drugs, diagnostics, and medical devices, Social Security, taxes, or any number of other macroeconomic issues.

Today's Market

updated Moments ago Sponsored by:
DOW 16,543.76 -99.25 -0.60%
S&P 500 1,976.74 -12.13 -0.61%
NASD 4,800.01 -28.31 -0.59%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 1:49 PM
MDVN $90.88 Down -1.53 -1.66%
Medivation, Inc. CAPS Rating: ***
ALPMY $14.75 Down -0.12 -0.81%