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Alexion Pharmaceuticals to Acquire Syntimmune

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Oct. 1 2018, Updated 6:48 a.m. ET

Acquisition deal

On September 26, Alexion Pharmaceuticals (ALXN) entered into an agreement with Syntimmune, wherein Alexion will acquire Syntimmune with an upfront payment of $400.0 million. Syntimmune is also eligible for milestone payments of up to $800 million, bringing the total value of the transaction to $1.2 billion.

Syntimmune is a clinical-stage biotechnology company that develops antibody therapeutics targeting neonatal Fc receptors. Syntimmune’s lead pipeline drug candidate, humanized monoclonal antibody SYNT001, blocks Fc receptor and IgG (immunoglobulin G) interactions, makes it a potential candidate for treating rare IgG-mediated diseases.

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This month, Alexion Pharmaceuticals also announced positive results for PREVENT, a Phase 3 study of Soliris for individuals with NMOSD (anti-aquaporin-4 auto antibody-positive neuromyelitis optica spectrum disorder). The trial met its primary endpoint by demonstrating that Soliris decreased the risk of relapse of NMOSD by 94.2%. To gain approval for commercialization of the treatment, Alexion plans to discuss the trial’s results with regulatory authorities around the world.

Stock performance

Yesterday, Alexion stock closed at $138.27, ~1.96% higher than the day prior, when it closed at $135.61, and~35% higher than its 52-week low of $102.10 on April 20. Alexion stock’s 52-week high is $144.91, which it reached on October 17, 2017. On September 26, Alexion stock rose 5.13% to $135.61 from $128.99 on September 25.

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Analysts’ recommendations

Of the 18 analysts tracking Alexion, five recommend “strong buy,” 11 recommend “buy,” and two recommend “hold.” Their consensus 12-month target price of $162.18 implies a ~17.29% return. In the next article, we’ll discuss Alexion’s financials in detail.

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