UPDATE 1-Medicines Co shares jump on favorable court order

* Court asks patent office to reconsider extension decision

* Angiomax patent expiration on hold until resolution of
case

* Shares rise as much as 27 pct

* Co extends recall for Cleviprex
(Adds details, analysts' comments)

By Jennifer Robin Raj

BANGALORE, March 17 (Reuters) - Medicines Co (MDCO.O: Quote, Profile, Research)
shares rose as much as 27 percent Wednesday, a day after a
federal court asked the U.S. Patent and Trademark Office (PTO)
to reconsider its decision to deny patent extension for the
company's anti-clotting drug, Angiomax.

"We view this decision as positive for Medicines, as it
potentially delays the launch of generic Angiomax competitors
from entering the market," UBS analyst Maged Shenouda said in a
note to clients. The brokerage maintained estimates as
long-term outlook on patent restoration remains bleak.

Setting aside the PTO's denial of the company's patent term
extension application, the Virginia court also ordered the PTO
to take necessary actions to ensure the patent does not expire
pending resolution of the court proceedings, Medicines Co said
late Tuesday.

PTO rejected the company's application for patent extension
under the Hatch-Waxman Act because it was filed late.

"While it remains unclear on what basis the PTO would
reconsider and why it would come to a different conclusion,
especially as Medicines already requested reconsideration twice
before and was denied, another chance at patent extension
creates option value for shareholders," RBC Capital Markets
analyst Jason Kantor wrote in a note.

The principal U.S. patent covering Angiomax was set to
expire on March 23. The company has a six-month period of
market exclusivity in the pediatric setting after expiry of the
patent.

RBC analyst Kantor said the court's decision "appears to
imply that Medicines can keep its patent alive as long as there
is an ongoing proceeding, and the six months of pediatric
exclusivity will not kick in until the patent officially
expires."

"At a minimum, this could buy Medicines several additional
months of exclusivity," he added.

The company has filed patent infringement lawsuits against
generic drugmakers APP Pharmaceuticals Inc, Israel-based Teva
(TEVA.TA: Quote, Profile, Research) and its Croatian subsidiary Pliva. These companies
have filed for marketing approval for generic Angiomax.

In a statement on Wednesday, Medicines said it is
voluntarily expanding a recall for certain lots of its blood
pressure drug Cleviprex that may contain particulate matter.

The company said four additional batches of the drug are
being recalled and it is cooperating with the U.S. Food and
Drug Administration and its contract manufacturer to remedy the
problem at the manufacturing site.

If the problem is remedied, Medicines expects to supply the
market in the second quarter of 2010, the company said in its
annual report filed Tuesday. If it is not, the company may
produce the drug using "other approaches", which could delay
the supply of Cleviprex by up to 18 months.

"We view this recent development as only a minor negative
for the company, and note that Angiomax is manufactured under
contract to a different facility," Wedbush analyst Duane Nash
said in a note.

Medicines Co shares were up 2O percent at $9.93 in midday
trade Wednesday on Nasdaq. They touched a high of $10.45
earlier in the session.
(Reporting by Jennifer Robin Raj in Bangalore; Editing by
Gopakumar Warrier, Ratul Ray Chaudhuri)