Medivation Reportedly Yielding To Buyer Interest; Stock Surges

By | May 9, 2016

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Shares of rising biopharma player Medivation ( MDVN ) jumped to an 11-month high Monday on reports the company now is willing to sell itself. Citing an anonymous source, Reuters reported that Medivation had signed non-disclosure agreements with Pfizer ( PFE ) and Amgen ( AMGN ), both of which were previously rumored to be interested in buying the company, while Sanofi ( SNY ) went public with its uninvited $9.3 billion bid last month. It still isn’t certain that those companies will actually bid, Reuters said. Medivation stock was up modestly in morning trading on the stock market today , but shares surged after the report came out in the early afternoon, eventually closing up 4.3% at 62.59. Medivation had initially resisted being bought by anyone, and in late March it reportedly hired advisers to help it fend off such attempts. The reason was implied by CEO David Hung in his refusal of Sanofi’s offer , when he accused the French pharma major of taking advantage of “market dislocation” that he believed led the market to undervalue Medivation’s stock. Medivation’s value has continued to go up since then, taking the stock to within 5% of its 52-week high last May. With an IBD Composite Rating of 97, putting it among the top 3% of all stocks in key metrics such as sales and earnings growth, it sits at No. 49 on the IBD 50 list of top-performing stocks. Scalper1 News

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