Medicines Co. rises on Angiomax drug settlement

October 3, 2011

NEW YORK (AP) -- Shares of The Medicines Co. climbed Monday after the company settled a patent infringement lawsuit on its anti-clotting drug Angiomax, which brings in nearly all of the company's revenue.THE SPARK: The Parsippany, N.J., company said Monday it ended a lawsuit against Teva Pharmaceutical Industries Ltd., which was seeking approval to market a generic version of Angiomax. Teva agreed not to start selling its generic until June 30, 2019, and it agreed to supply Medicines Co. with the drug's active ingredient.THE BIG PICTURE: Teva, the world's largest generic drug company, is one of several companies seeking approval to market its own low-cost version of Angiomax. In the first six months of 2011, sales of Angiomax grew 9.5 percent to $231.4 million. The company reported a total of $231.7 million in revenue over that time.THE ANALYSIS: Citi Investment Research analyst Lucy Lu said the settlement with Teva "sets a benchmark" for Medicines Co.'s litigation with the other drugmakers, including Mylan Inc., Hospira Inc., and APP Pharmaceuticals, and it will help the company negotiate more favorable settlements. She said the agreement gives Medicines Co. at least four more years of patent exclusivity on Angiomax.Lu kept a "Buy" rating on Medicines Co. shares and raised her price target to $24 per share from $21.SHARE ACTION: Medicines Co. stock rose $1.65, or 11 percent, to $16.53 in midday trading. The company's stock had risen 21 percent since Aug. 9, when it hit its lowest point of the year.