ALXN - Embedded Expectations Analysis - 2019 01 22
Alexion Pharmaceuticals, Inc. (ALXN:USA) currently trades near historical lows relative to UAFRS-based (Uniform) Earnings, with a 13.0x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about revenue growth internationally, pipeline opportunities, and SolirisSpecifically, management may lack confidence in their ability to sustain the strength of their revenue and operating margins going forward. They may also lack confidence in their ability to convert Soliris into a large opportunity in the Paroxysmal Nocturnal Hemoglobinuria (PNH) space, and in the sustainability of increases in Myasthenia Gravis (MG) patients under therapy in the US. Furthermore, they may be exaggerating the favorable results of their Phase III study of Neuromyelitis Optica Spectrum Disorder (NMOSD), and may lack confidence in the sustainability of low adjudicated relapse rates
Moreover, they may lack confidence in their assertion that they have addressed the C5 inhibition with Soliris, and may be exaggerating the progress of their cost-saving discussions with ALXN1210 payers. Also, they may be concerned about their international markets, and may be exaggerating the number of projects they have in the research stage of their pipeline
Alexion Pharmaceuticals is a biopharmaceutical company serving patients and families affected by rare diseases through the discovery, development and commercialization of therapies. The company has developed and commercialized two complement inhibitors to treat patients with paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome, as well as the complement inhibitor to treat anti-acetylcholine receptor antibody-positive generalized myasthenia gravis and neuromyelitis optica spectrum disorder in patients who are anti-aquaporin-4 antibody positive. In addition, the company has two enzyme replacement therapies for metabolic disorders, hypophosphatasia and lysosomal acid lipase deficiency.
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