Alexion's (ALXN) Soliris Drives Growth Amid Pricing Pressure
Zacks Investment Research | Dec 27, 2018 06:21AM ET
We issued an updated report on Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) on Dec 26, 2018.
Alexion is a biopharmaceutical company that focuses on the development and commercialization of life-transforming drugs for the treatment of patients with ultra-rare disorders.
The company’s lead drug Soliris, the key growth driver, is approved for the treatment of two severe and ultra-rare disorders resulting from chronic uncontrolled activation of the complement component of the immune system — paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS). Alexion is working on expanding Soliris’ label into additional indications.
The FDA had also approved the drug for the treatment of refractory gMG in patients who are anti-acetylcholine receptor antibody-positive. The drug was approved in Europe as well for this indication. The initial uptake of the drug for this indication has been encouraging as the company continues to add new patients in the United States.
Alexion received a significant boost with the FDA approval of its long-acting C5 complement inhibitor, Ultomiris for the treatment of adult patients with PNH. The FDA approval comes well ahead of its action date set for Feb 18, 2019. The approval will strengthen Alexion's PNH franchise.
Alexion is also conducting a phase I study of subcutaneous ALXN1210, co-administered with Halozyme Therapeutics, Inc.’s (NASDAQ:HALO) ENHANZE drug-delivery technology, PH20. In the meantime, Strensiq and Kanuma are doing well and will boost revenues.
Meanwhile, Alexion is making strategic acquisitions to diversify its portfolio. The company acquired Sweden-based Wilson Therapeutics for $855 million. The acquisition added a late-stage candidate, WTX101 to Alexion’s pipeline. The candidate is currently in phase III for the treatment of Wilson disease, a rare genetic disorder.
Alexion also acquired clinical-stage biotechnology company, Syntimmune, for $1.2 billion. Syntimmune develops antibody therapeutics, targeting the neonatal Fc receptor (FcRn). The acquisition will add a mid-stage candidate, SYNT001 to Alexion’s pipeline. Alexion announced a partnership with Complement Pharma to co-develop the preclinical C6 complement inhibitor, CP010, for neurodegenerative disorders.
Share price of Alexion has decreased 21.1% year to date, narrower than the industry ’s decline of 25.6%.
Get The News You Want
However, pricing is likely to impact sales. Moreover, the company relies heavily on Soliris for growth.
Zacks Rank & Key Picks
Alexion currently carries a Zacks Rank #3 (Hold). A couple of better-placed stocks in the healthcare sector include Bristol-Myers Squibb Company (NYSE:BMY) and Exelixis, Inc (NASDAQ:EXEL) . Both the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Bristol-Myers’ earnings per share estimates have increased from $3.84 to $3.87 for 2018 and $4.03 to $4.14 for 2019 over the past 60 days. The company delivered a positive earnings surprise in all the trailing four quarters, with average of 11.99%.
Exelixis’ earnings estimates have moved up from $1.03 to $1.30 for 2018 and from $1.09 to $1.25 for 2019 over the past 60 days. The company delivered positive earnings surprise in all the trailing four quarters with the average beat being 83.43%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.