Mizuho Analyst On The Fence At Medicines Co. Pending Patent Appeal

Uncertainty over patents on The Medicines Company (NASDAQ: MDCO)'s lead blood-clot drug Angiomax will hurt results going forward, an analyst said Friday.

Hospira, Inc. (NYSE: HSP) is set to launch a generic version of Angiomax in June under a court ruling concerning a patent dispute last year.

Although Medicines Co. is appealing that ruling, the company said Thursday that its customers are holding off on purchases in hopes of a cheaper alternative.

Mizuho's Mario Corso maintained a Neutral rating "pending the appeal."

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But Corso cut his target 9 percent to $27.50 citing lower than expected revenue.

Shares of Medicines Co. changed hands recently at $28.22, up $0.40.

On Thursday, the Parsippany, New Jersey-based company blamed a roughly 27 percent first-quarter revenue decline on customer uncertainty over patent protections on Angiomax, which accounts for more than 80 percent of revenue.

But Medicines Co. faces at least three regulatory decisions that will soon shed important light on its cost structure going forward, Corso said.

The company expects a regulatory decision April 15 on its new drug application for Cangrelor blood-clot medicine. On April 30, the company expects a decision on its Ionsys patient-controlled pain management product, while a similar ruling on its Raplixa blood coagulating product may come in late April or early May.