It has been about a month since the last earnings report for Medicines Co. . Shares have lost about 1.2% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Medicines Co. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Medicines Company’s Q2 Earnings Top, Revenues Nil
The Medicines Company reported second-quarter 2019 adjusted loss of 63 cents per share, narrower than the Zacks Consensus Estimate of a loss of 66 cents and in line with the year-ago loss.
In the reported quarter, the Medicines Company did not generate any revenues. The Zacks Consensus Estimate for the metric was pegged at $2.5 million. In the prior-year quarter, the company’s revenues grossed $1.6 million.
Adjusted selling, general and administrative expenses were down 5.7% year over year to $16.6 million in the reported quarter. Moreover, adjusted research and development expenses declined 11.7% to $25.7 million.
The company’s cash and cash equivalents as of Jun 30, 2019 totaled $319.3 million compared with $199.7 million on Mar 31, 2019. The company believes that its existing cash balance will enable it to fund operating expenses through the second half of 2020.
Pipeline Update
In July, the Independent Data Monitoring Committee (IDMC) recommended continuation of the ongoing phase III ORION studies on inclisiran as designed. Therefore, the same is being conducted without any modification.
The latest suggestion from IDMC came after the regulatory body’s seventh review of unblinded safety and efficacy data from the ORION programs on inclisiran.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted -21.01% due to these changes.
VGM Scores
Currently, Medicines Co. has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. Notably, Medicines Co. has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Medicines Co. (MDCO) Down 1.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Medicines Co. . Shares have lost about 1.2% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Medicines Co. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Medicines Company’s Q2 Earnings Top, Revenues Nil
The Medicines Company reported second-quarter 2019 adjusted loss of 63 cents per share, narrower than the Zacks Consensus Estimate of a loss of 66 cents and in line with the year-ago loss.
In the reported quarter, the Medicines Company did not generate any revenues. The Zacks Consensus Estimate for the metric was pegged at $2.5 million. In the prior-year quarter, the company’s revenues grossed $1.6 million.
Adjusted selling, general and administrative expenses were down 5.7% year over year to $16.6 million in the reported quarter. Moreover, adjusted research and development expenses declined 11.7% to $25.7 million.
The company’s cash and cash equivalents as of Jun 30, 2019 totaled $319.3 million compared with $199.7 million on Mar 31, 2019. The company believes that its existing cash balance will enable it to fund operating expenses through the second half of 2020.
Pipeline Update
In July, the Independent Data Monitoring Committee (IDMC) recommended continuation of the ongoing phase III ORION studies on inclisiran as designed. Therefore, the same is being conducted without any modification.
The latest suggestion from IDMC came after the regulatory body’s seventh review of unblinded safety and efficacy data from the ORION programs on inclisiran.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted -21.01% due to these changes.
VGM Scores
Currently, Medicines Co. has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. Notably, Medicines Co. has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.