A Beaten-Up Pharma With a Big Upside [The Medicines Company(NASDAQ:MDCO), Pfizer Inc.(NYSE:PFE), Merck & Co., Inc.(NYSE:MRK)]

biotechnologyThe Medicines Company(NASDAQ:MDCO) has had a really tough first half of 2014, and the stock price shows it. When one of its drugs did not receive approval from regulators and a court decision concerning one of its drugs going generic went against the company, the stock dropped 44%.

But based on a pipeline of eight more drugs and the recent approval of Orbactiv, a treatment for drug-resistant infections, analysts say this stock has 28% upside in just the next year.

Medicines Company is expecting 10% annual growth per year for the next five years, with revenues moving from $720 million to $3 billion by 2016.

A P/E of 18.5 for 2015 earnings does not make Medicines Company look like much of a bargain, but when you look at all the new drugs on the horizon and the huge numbers the company can generate, the bargain story begins to take shape.

Medicines Company: Take a look at this one.

FinanceBot 3000

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