Quick Win by the Algorithm

Medivation, Inc. (MDVN)

Medivation, Inc. is a biopharmaceutical company focused on the development and commercialization of medically innovative therapies to treat serious diseases for which there are limited treatment options. Medivation aims to transform the treatment of these diseases and offer hope to critically ill patients and their families.

Medivation, Inc., in partnership with Astellas Pharma Inc., announce on March 24th that they have started their new ARCHES (AR Inhibition with ChemoHormonal Therapy in Men with MEtastatic Castrate Sensitive Prostate Cancer) Phase III registrational trial. The trial is aiming to test the efficacy and safety of their enzalutamide drug combined with androgen deprivation therapy (ADT) versus placebo with ADT in metastatic hormone sensitive prostate cancer (mHSPC) patients.

ADT is currently the standard treatment for men with prostrate cancer which is estimated to be the cause of death for 26,000 men in the US in 2016 alone. This trial will be testing the benefit of administering enzalutamide in addition to ADT in a randomize, double-blind, placebo-controlled study. Approximately 1,100 patients with prostate cancer will be enrolled in this ARCHES trial at about 250 centers internationally. The drug is to be administered orally once daily conjointly with ADT.

XTANDI, the brand name that the enzalutamide drug is known as, it has one main competitor from Johnson & Johnson company but has been showing signs that it will overtake the rival drug. In similar trials held for each drug, XTANDI had significantly fewer patients progress or die while on the drug versus their rival. In addition, the rival drug must be taken with a steroid called Prednisone which is poorly tolerated by patients while XTANDI is administered alone.

The algorithm is continuing to give a bullish signal for MDVN on the mid-term time horizon. The stock has a strong bullish signal of 186.01 and a predictability of 0.33 for the 3-month period starting on March 18th, 2016.