Despite disappointing results from Dendreon’s (DNDN) much-ballyhooed prostate cancer drug, Provenge, there’s still a big opportunity in the market. The prostate cancer market just needs the right drug. Medivation (MDVN) may well have that drug, with XTANDI. XTANDI is already approved by the FDA for men with castration-related prostate cancer.
In fact, Medivation is expected by some to sell $866 million worth of the drug in 2014. And others think it could be worth $3 billion per year in a market where there are too few treatment options, as its permitted usage widens and the company’s other drugs hit the market.
If that sales projection is anywhere close to being on target, MDVN stock is an outright bargain, as the company’s current market cap is only $6.4 billion. That makes it one of the more undervalued biotech stocks out there, which in turn makes it a potential target for a pharma company that can see the bigger picture and wants to get into a market that could be worth more than $9 billion by 2021.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.