The patents Medivation owns and licenses don’t protect Xtandi® because a competing pharmaceutical company, Chugai Pharmaceutical Co., Ltd., has a superior and earlier patent to the same drug. With this superior patent, Chugai Pharma can exert its rights over Xtandi® at any time, destroying Medivation in the process. We invite you to read our full report, which fully covers all the details that led us to these conclusions. Go to "scribd", the digital document library, and search for document "153462932". We believe it will be worth your time and money.
If what your claiming turns out to be in fact true then Chugai Pharma’s WO 2006/028226 patent estate annihilates Medivation’s claims to Xtandi® and exclusive rights to Xtandi® accrue to Chugai Pharma. The result of this transfer of rights implies that Chugai Pharma would exclude Medivation from the Xtandi® market and MDVN would become a black hole for investors. As this report gains visibility the stock could suffer significant damage which would take time to repair even if Chugi’ were to lose the patent claim.
Judging by price action today, UBS’s dramatic upgrade looks like cover for their trading desk to lighten up. The timing is too coincidental to be so, much more likely that they got wind of the patent issue and decided to lighten their bet hence the not so dramatic pop early and the fade the rest of the day.