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Alexion Pharmaceuticals Crushes Earnings and Revenue

Posted by on April 27, 2017 7:05 AM
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Categories: Stocks

April 27, 2017: Alexion Pharmaceuticals reports Q1 EPS of $1.38 versus the $1.23 estimate. Revenue also crushed estimates coming in at $870 million versus the $821 million estimate.

The CEO David R. Brennan said, “Alexion’s strong performance in the first quarter positions us well for continued success in 2017 and beyond. As we continue to grow our business, we will be anchored by a culture of compliance and driven by passion and dedication to patients. I am excited to work with our team to capitalize on Alexion’s fundamentals to drive continued momentum and long-term growth by enhancing our commercial, R&D and capital allocation priorities to drive superior financial performance and shareholder returns.”

April 24, 2017: Hearing takeover rumors circulating about Alexion Pharmaceuticals. The rumors appear to be coming from a FT article published on April 23, 2017, which discusses Sanofi playing down the need for M&A and then quotes an investor as saying, “Sanofi should instead focus its efforts on a string of smaller acquisitions, or target a company that is unlikely to draw rival bidders, such as rare diseases drugmaker Alexion, the investor argued.” That’s pretty weak logic to base takeover rumors on IMO so I wouldn’t put too much importance on the rumors at this time.

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:

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

The Finviz screener settings used to find Alexion Pharmaceuticals are: Sector Healthcare, Sales growth past 5 years Over 30%, EPS growth qtr over qtr 100% – 200%, Gross Margin High (>50%)

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.


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Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on unless specifically stated in the article. Owner of Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.
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