How Much Upside Potential Does Alexion Have?
Among the 22 brokerage firms rating Alexion after Alexion’s 1Q16 earnings release, 63.6% recommended a “buy.” The remaining 36.4% issued a “hold.”
In 1Q16, Strensiq added $33.2 million to Alexion Pharmaceuticals’ top line. Now the drug is in its initial launch phase in the US, Germany, and Japan.
During the first quarter of 2016, Alexion Pharmaceuticals (ALXN) earned $664.7 million from the sale of its flagship drug, Soliris.
Alexion reported a revenue decline of 1.5% and an earnings decline of 2.2% in 1Q16, which surprised investors and led to a 6% fall in its share price.
Alexion reported sales amounting to $701 million in the first quarter of 2016. Wall Street analysts were expecting the company to record $711.9 million.
IBB’s mid-cap holding Kite Pharma (KITE) rose by 3.3% on the news of the FDA granting orphan drug status to Kite’s KTE-C19.
Regeneron Pharmaceuticals (REGN) gained 2.1% and closed at $384.52 on May 2, 2016.
The iShares NASDAQ Biotechnology ETF followed the market trend and gained 1.1% after a five-day losing streak, a positive beginning for the month of May.
AbbVie (ABBV) expects investigational drug Rova-T (rovalpituzumab tesirine) to generate $5 billion in peak sales if it’s approved by regulatory authorities.
On April 28, 2016, AbbVie (ABBV) announced its plans to acquire Stemcentrx. The deal is expected to be completed at a consideration of about $5.8 billion.
Analysts updated their recommendations for AbbVie (ABBV) after the release of its 1Q16 earnings on April 28, 2016.
On April 28, 2016, AbbVie was trading at a forward PE multiple of about 9.93x. Since January 1, 2016, the company has traded at PE multiples of 8.6x–10.1x.
Wall Street has projected a rise in BDX’s net profit margins, which are expected to come in at ~$437 million, a YoY rise of around 14.2%, in fiscal 2Q16.
As of April 29, BDX was trading at a forward PE multiple of 18.1x, higher than its peer Medtronic but lower than its peers Boston Scientific and Stryker.
On May 5, 2016, Becton, Dickinson and Company (BDX) will announce its fiscal 2Q16 earnings for the period ended March 31, 2016.
In a Bloomberg survey of 20 brokerage companies recorded on April 29, 2016, about 55% of analysts rated BDX as a “buy,” and 45% rated it as a “hold.”
The biggest mid-cap rise in the week ended April 29, 2016, was seen by Medivation (MDVN). MDVN rose as it rejected a hostile takeover bid from Sanofi (SNY).
Boston Scientific’s sales stood at $2.0 billion in 1Q16. The company had issued guidance for the quarter in the range of $1.89 billion–$1.94 billion.
The last week of April 2016 saw biotechnology stocks falling as weak earnings gripped the market.
Based on recommendations of 27 broker firms in a Bloomberg survey, 81.5% gave Boston Scientific a rating of “buy.”