Not So Fast, Alexion Investors

• Shares of Alexion Pharmaceuticals, Inc. ALXN have declined by almost 9 percent in the last month.
• Barclays’ Geoff Meacham has downgraded the rating on Alexion from Overweight to Equal-Weight, while lowering the price target from $220 to $205.
• Following the delays in the launch of Strensiq/Kanuma, the incremental sales growth from these products has been pushed to 2H16.

Both Strensiq and Kanuma have recently received European approval, while the U.S. approval is expected in 2H15 and 4Q15, respectively. “Given these timelines and a gradual launch, we expect it will take some time to build launch momentum and reaccelerate growth,” Meacham said.

With regard to Soliris, Meacham reported that recent comments regarding next-gen Soliris were “encouraging,” while expecting longer term upside, driven by Soliris’ label expansion.

While Meacham mentioned that there were no fundamental concerns regarding the company’s portfolio or pipeline, the 2015-2017 combines estimates for Strensiq/Kanuma had been lowered, although the estimates were still ahead of the consensus for 2017.

Given the “timing of significant growth re-acceleration” and with “F/X headwinds continuing in 2H15 and Strensiq / Kanuma not reaching a threshold to meaningfully impact growth until 2H16, we view other names in larger cap biotech as relatively more attractive,” the Barclays report said.