Shkreli's Very Bullish Call On Alexion Following Recent Downside: 'Double From Here'

Shares of Alexion Pharmaceuticals, Inc. ALXN, which saw a move above the $130 handle in the aftermath of its financial results released on October 27, have lost some of the sheen now.

Alexion's third-quarter results showed that the company reversed to a profit of $0.42 per share from a loss of $0.81 per share in the year-ago period. Net product revenues rose roughly 20 percent to $799.11 million. The company raised its revenue and non-GAAP earnings per share guidance ranges.

In reaction to the results and the guidance, the stock climbed over 8 percent to $131.37 on October 27 and tacked on 3.2 percent in the next session before settling at $135.58.

Volatile Ride On November 4

However, on November 4, the stock experienced volatility on the news of the company cancelling a Credit Suisse conference, rumors of a takeover and Benzinga breaking the news of a possible delay in the filing of its 10Q statement.

Alexion shares hit a high of $144.42 intra-day before pulling back to $121.55, although it covered up the losses for the day before ending at $129, up from the previous session's close of $127.52.

On Monday, November 7, the stock tanked about 7 percent and has been going about a volatile ride since then. From the recent October 28 high, the stock is currently down about 12 percent.

Shkreli Expects Stock To Double

Pharma entrepreneur and hedge fund manager Martin Shkreli is of the view that Alexion is probably the cheapest of the large cap drug/biotech companies. Shkreli believes Soliris is underestimated and competitive threat is not a worry. He expects the shares of the company to double from here.

Alexion shares traded recently at $119.38.