January 4, 2017: Seeing heavy call activity in Alexion Pharmaceuticals: 2,000 Aug $140 calls traded at $12.80. I wonder if the heavy call activity has anything to do with the takeover rumors that were circulating on December 20, 2016, about Alexion Pharmaceuticals?
December 22, 2016: Leerink defending Alexion Pharmaceuticals; Reiterates outperform rating and price target of $211. Leerink says that the failure of Soliris for the prevention of delayed graft function (DGF) after kidney transplantation does not materially impact firms long-term Soliris forecasts or growth rate, but does represent another example of Alexion ploughing Soliris profits into high risk trials for low value indications. DGF represented less than $50M of annual global sales for their long-term Soliris forecasts (previous probability of success was 35%), and the removal does not impact firms valuation.
December 20, 2016: Hearing takeover rumors circulating about biotechnology firm Alexion Pharmaceuticals. The rumor is that a big (but unnamed) drug company has approached Alexion Pharmaceuticals with a takeover offer. The rumor is that Roche could be still interested in Alexion. The rumors are likely coming from this story: http://www.streetinsider.com/Hot+M+and+A/Alexion+Pharmaceuticals+%28ALXN%29+Said+to+Receive+Takeover+Approach+-+Source/12360443.html
I put a lot of credibility on this takeover rumor because the CEO Hallal left the company on 12/12/16 for “personal reasons” and CFO Sinha also left the company to “pursue other opportunities.” Sometimes when high-ranking officers in a company start leaving all of a sudden, something big is going on.
Alexion Pharmaceuticals Stock Chart
Alexion is a biopharmaceutical company focused on serving patients with severe and rare disorders through the innovation, development, and commercialization of life-transforming therapeutic products.