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Medidata Clinical Cloud Selected for AML Master Trial by LLS

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Medidata Solutions Inc. recently announced that The Leukemia & Lymphoma Society (“LLS”) has selected its flagship Medidata Clinical Cloud platform for diagnosis and treatment of acute myeloid leukemia (AML) through a clinical trial known as the ‘Beat AML Master Trial’. We note that LLS is the world's largest voluntary health organization dedicated to funding blood cancer research.

Per management, the Beat AML Master Trial is a great example of a precision medicine that leverages on the Medidata Patient Cloud platform. Interestingly, Medidata Cloud addressed over 800 life sciences companies in the last reported quarter and gave them an integrated platform to meet the future development needs.

Getting back to the news, Medidata has been working closely with INC Research to deploy solutions across all research sites participating in the Beat AML Master Trial. These solutions included Medidata Coder, and Medidata Rave – the company’s integrated solution for electronic data capture, management and report.

Headquartered in New York, Medidata is a pioneer in global drug development techniques, courtesy of its highly advanced cloud-based solutions for clinical research.

Of late, the company gained a lot of prominence in the niche markets leveraging on its diversified product portfolio, which includes highly exclusive products like Image Management, Risk-Based Monitoring, Medidata Balance, Medidata CTMS and Medidata Patient Cloud.

Stock Performance

Medidata’s price performance has been encouraging.

Over the past one year, the stock represented a stellar return of almost 54.4%, outshining the Zacks classified Medical Information Systems sub-industry’s loss of 3.7%. Furthermore, the current return of the stock is well ahead of the S&P 500’s return of 13.6% over the same time frame.

Coming to the estimate revision trend of Medidata, two estimates moved north in the last two months compared to no movement downward for the full year. As a result, the current year estimates inched up 0.8% to 75 cents per share, over the same time frame.

The bullish analyst sentiments justify the stock’s Zacks Rank #2 (Buy).

Our Take

The Cancer/Tumor Profiling market has good prospects as it is forecast to reach a worth of $35 billion by 2018, growing at a CAGR of 18.5% (Companies and markets.). This highlights the potential of Medidata’s Clinical Cloud platform in the market for cancer and tumor treatment in the coming quarters.

Also, a long-term expected earnings growth rate of 21.67% and a projected sales growth of 18.95% instill confidence on the stock.

Stocks to Consider

Better-ranked stocks in the broader medical sector include Inogen Inc. (INGN - Free Report) , Avinger, Inc. (AVGR - Free Report) and Fluidigm Corporation . Notably, Inogen sports a Zacks Rank #1 (Strong Buy) while Fluidigm and Avinger carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock represents an impressive one-year return of 86.2%.

Avinger projects sales growth of 30.6% for the current year. Additionally, the company has projected earnings per share growth rate of 39.53% for the current year.

Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock posted a positive earnings surprise of 1.6% in the last reported quarter.

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