How Alexion Plans to Fuel Strensiq Sales



Strensiq: Alexion’s potential driver

Alexion Pharmaceuticals (ALXN) has acquired Strensiq, a metabolic franchise drug from Enobia pharma. (For detailed information on the drug, please refer to “After the Enobia Pharma Acquisition, Here Comes Strensiq.”)

As the Enobia pharma acquisition was completed in February 2012, Alexion benefited in terms of long-term disease awareness, diagnostic planning, and initiatives in the HPP (hypophosphatasia) space. The drug is expected to create great leverage for Alexion over time.

Strensiq is in its third fiscal quarter after launch. According to Wall Street analyst estimates, Strensiq’s revenues in 2Q16 and 3Q16 should grow by 23% and 16% on QoQ (quarter-over-quarter) basis to reach $40.8 million and $47.4 million, respectively.

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How Alexion plans to drive Strensiq?

Identifying and serving more patients with HPP will be the key to Strensiq’s success in the long run. For this purpose, Alexion has created an HPP diagnostic team. Along with the specialty diagnostic team, the team will help test more appropriate patients. Alexion’s efforts of recruiting, hiring, training and deploying diagnostic specialists will likely bear fruit in 2017 and beyond.

Pharmaceutical and biotechnology companies are exposed to patent expiry and the threat of biosimilars. This could be the major reason they are opting for acquisitions and strategies to protect their key drugs. Shire (SHPG), Sanofi (SNY), and Jazz Pharmaceuticals (JAZZ) have thus grown inorganically to expand their existing portfolio.

To diversify the risk of investing directly in the equity of Alexion, you can look for options like the Health Care Select Sector SPDR Fund (XLV), which has 0.99% of its assets in Alexion.

Continue to the next part for Kanuma, a recent addition to Alexion’s portfolio.


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