KeyBanc Capital Markets Analyst Donald Hooker is currently recommending Medidata Solutions Inc (MDSO). While it is a data company, Hooker says Medidata focuses on the pharmaceutical and biopharmaceutical space.
“They are helping digitize clinical trials and observational research. They are well-funded, they have a deep product pipeline, and they are well-aligned with key trends,” Hooker says. “They have a big total addressable market and very reasonable consensus expectations on it.”
“So it’s sort of a beat-and-raise scenario, and some near-term catalyst potential for this within some different legislation that is in process of that addresses the use of information technology in clinical trials,” Hooker adds.
He is referring to the 21st Century Cures Act, which passed the House in July and is working its way through Congress to the President’s desk.
“That has helped set the stage for the health hubs and safeguards and regulations around using technology in clinical trials,” Hooker says. “That would accelerate demand for Medidata potentially over the next couple of years.”