Analyzing Alexion Pharmaceuticals’ Dicerna Collaboration

Dicerna collaboration

In October 2018, Alexion Pharmaceuticals (ALXN) entered a collaboration with Dicerna Pharmaceuticals that provides Alexion exclusive worldwide licenses and development and commercial rights to two molecules for complement-mediated diseases along with an exclusive option for other molecules for two additional targets within the complement pathway. Under the collaboration, Alexion will make an upfront payment of $37.0 million and could be required to pay up to ~$625.0 million in milestone payments and royalties on product sales.

Analyzing Alexion Pharmaceuticals’ Dicerna Collaboration

Price performance

Alexion Pharmaceuticals stock corrected from $124.95 on January 3 to $106.04 on April 25. Subsequently, it steadily recovered to $127.18 on July 5.

Amid the broader market turmoil in October, Alexion Pharmaceuticals stock has seen selling pressure and fell to $112.07 on October 31. The company’s stock has seen buying interest in the last few trading sessions and is currently trading at $127.18 levels in November 2018.

For fiscal 2018, Alexion Pharmaceuticals is expected to generate cash flow per share of $4.78 as compared with cash flow per share of $4.89 in fiscal 2017. In comparison, peers Abbott Laboratories (ABT), Amgen (AMGN), and Johnson & Johnson (JNJ) are expected to generate cash flow per share of $3.24, $14.99, and $8.53, respectively.

We’ll take a look at analysts’ views on Alexion Pharmaceuticals stock in the next part.