Inside Alexion’s Latest Analyst Recommendations



Growth drivers

In 2016, Alexion Pharmaceuticals (ALXN) reported revenues of nearly $3.1 billion, which represents a YoY (year-over-year) growth of ~18%. The company witnessed 22% growth in sales volumes in 2016. Alexion Pharmaceuticals also reported non-GAAP (generally accepted accounting principles) EPS (earnings per share) of around $4.62 and GAAP EPS of $1.76 in 2016.

Solid volume growth of leading PNH (paroxysmal nocturnal hemoglobinuria) and AHUS (atypical hemolytic uremic syndrome) drug, Soliris, has been a key factor driving Alexion’s revenue growth in 2016.

The company also expects its HPP (hypophosphatasia) drug Strensiq to be a major growth driver in 2017. The metabolic disease drug Kanuma is also expected to benefit from rising disease awareness as well as improving diagnostic tests for lysosomal acid lipase deficiency.

Notably, Alexion Pharmaceuticals makes up about 4.1% of the iShares Nasdaq Biotechnology ETF’s (IBB) total portfolio holdings.

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Analyst recommendations

Of the 21 analysts covering Alexion Pharmaceuticals in February 2017, seven have rated the company as a “strong buy,” and ten have rated it as a “buy.” Four analysts have rated Alexion Pharmaceuticals as a “hold,” and none have rated it as a “sell” or a “strong sell.” Approximately 81% of analysts have given the company some form of positive recommendation.

Of the 25 analysts covering Vertex Pharmaceuticals (VRTX) in February 2017, ~44% have rated the company as a “buy.” Approximately 55% of the 29 analysts covering Gilead Sciences (GILD) have given it “buy” recommendations in February 2017. About 56% of the 29 analysts covering Amgen (AMGN) have rated the company as a “buy” this month.

In the next part of this series, we’ll discuss revenue growth drivers for Alexion Pharmaceuticals in 2017.


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