Revenue in 2Q16
Alexion Pharmaceuticals (ALXN) reported earnings for 2Q16 on July 28, 2016. Alexion’s 2Q16 revenues stood at $753.1 million, which surpassed Wall Street analyst estimates.
Analysts were expecting it to generate $742.9 million during the period. The revenue growth on YoY (year-over-year) basis was 18.4%, which led to a surprise of 1.4%. Currency exchange had a 3% negative impact on revenue.
Soliris remained Alexion’s major revenue driver, contributing $701 million and translating annual revenue growth of 10% during 2Q16. A steady number of new patients drove the drug’s sales. Strensiq’s net sales stood at $45 million, while Kanuma recorded net sales amounting to $6 million in 2Q16.
Positive earnings surprise
For 2Q16, Alexion’s non-GAAP (generally accepted accounting principles) diluted EPS (earnings per share) stood at $1.25, whereas Wall Street analysts expected the earnings to be $1.17 per share. From the non-GAAP EPS of $1.25, $0.12 was attributable to income tax modification.
To divest risk, investors can choose ETFs like the iShares Core S&P 500 ETF (IVV). IVV has 7.8% of its assets in pharmaceutical companies and offers 1.82% and 1.18% weights to Johnson & Johnson (JNJ) and Pfizer (PFE), respectively. Merck & Company (MRK) represents 0.86% of the fund’s total assets, while Alexion’s share in the total holdings is 0.16%.
Now let’s discuss Alexion’s performance in 2Q16.