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J&J deal not negative for Medivation, says Citigroup

Citigroup says that at first glance, Johnson & Johnson's (JNJ) acquisition of Aragon looks negative for Medivation (MDVN) since Aragon's prostate cancer candidate ARN-509 will be owned by J&J, who also owns Medivation competitor Zytiga. However, Citi says the deal not only shows that J&J is bullish on the prostate cancer market, it also removes one of the key concerns on Medivation shares, namely that Zytiga will go generic in April 2016. Citi believes the prostate cancer market is big enough for both J&J and Medivation and keeps a Buy rating and $70 price target on shares of Medivation.