The Medicines Company (NASDAQ: MDCO) is making a run for the top in the market this morning after news broke that the company has caught the attention of Novartis (NYSE: NVS). At the moment, the stock is trading on gains of more than 26%. Here’s what’s going on:
MDCO Climbs On Takeover Interest By NVS
For a few hours now, stories have been breaking that Novartis is intereted in taking over The Medicines Co. According to sources close to the story, the two companies have held talks discussing a potential takeover.
Interestingly, MDCO seems to have received expressions of interest from other possible buyers as well. The news comes after the company published encouraging results at an AHA conference for Inclisiran.
Inclisiran is the company’s twice-yearly treatment that has the potential to become the standard of care for patients with high levels of LDL cholesterol, or bad cholesterol. In fact, MDCO said that it will be seeking FDA approval for the treatment with an application to the agency by the end of the year.
To that end, Mark Timney, CEO at MDCO, had the following to offer:
The excellent results of ORION-9 are very encouraging for the many FH patients who require additional LDL-lowering to help them reach their treatment goals. Inclisiran presents the first-ever potential option for durable and potent lowering of LDL-C using twice-yearly dosing to give healthcare professionals more control over getting their patients to goal.
There Are A Few Things To Consider Here
Before making any moves based on takeover chatter, investors should always do a bit of digging. After all, this type of chatter just so happens to be the most common form of market manipulation. Nonetheless, this looks like the real deal. Here’s how I see it:
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