(MDCO) - Over the past 90 days, this year's estimates have increased 35%

The Medicines Company has dramatically exceeded earnings estimates in three out of the past four quarters. The three positive surprises averaged 43%. Five analysts have raised their numbers for this year, while four have done so for next year. Over the past 90 days, this year's estimates have increased 35% to 27 cents per share. Next year's estimates have jumped 7.2% to 89 cents per share. Full Analysis The Medicines Company (MDCO) is engaged in acquiring, developing, and marketing specialty pharmaceutical products that are discovered by other pharmaceutical and biotechnology companies. Its leading product, Angiomax (bivalirudin), which was acquired from Biogen Idec, Inc. in 1996, is used as an anticoagulant in patients undergoing coronary angioplasty. The company's other late-stage products include Clevidipine and Cangrelor, both acquired from AstraZeneca several years ago. Clevidipine is an intravenous drug (calcium channel blocker) intended for the short-term control of blood pressure in patients undergoing cardiac surgery. Cangrelor is an intravenous anticoagulant, having potential uses in coronary angioplasty and cardiac surgery. The company sells its products through its own sales force and distributors. Angiomax is the company's first approved product in the U.S. (December 2000); the company began selling the product in early 2001. The Medicines Company has clearly demonstrated Angiomax s superiority to heparin, a standard anticoagulant used in the U.S. To reinvigorate Angiomax growth the company is conducting trials so that it can be used for additional indications like Coronary Artery Bypass Graft (CABG) and acute coronary syndromes (ACS). The company has dramatically exceeded earnings estimates in three out of the past four quarters. The three positive surprises averaged 43%. Five analysts have raised their numbers for this year, while four have done so for next year. Over the past 90 days, this year's estimates have increased 35% to 27 cents per share. Next year's estimates have jumped 7.2% to 89 cents per share. The stock is currently trading at 25.8x next year's estimates of 89 cents per share, well below the projected long-term growth rate of 37.5%, giving the stock a PEG ratio of 0.69. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home