Alexion's New CFO Continues To Shore Up Investor Concerns

Alexion Pharmaceuticals, Inc. ALXN announced Tuesday that Paul Clancy has been appointed to replace Dave Anderson as CFO, effective July 31.

Anderson will remain as a senior advisor through August to ensure a smooth transition.

“Paul is well-known among biotech investors, having spent the last 10 years as Biogen's CFO,” noted UBS analyst Martin Auster in a note.

The announcement is expected to lessen investor concerns over surprises lying in wait.

On Wednesday, shares were up 7.9 percent to $116.56.

The analyst continued to express confidence in the company, following his assertion in late-May that, due to high pessimism, even just the absence of negative headlines could serve as a catalyst.

Auster believes that growth drivers including Soliris gMG’s approval and ALXN1210 Phase 3 data can restore company value. Alexion will also need to reduce implied risk under recent regulatory headwinds.

The analyst maintained a Buy rating and $140 price target.

Morgan Stanley analyst Matthew Harrison recently upgraded the company to Overweight, citing new management and too-low investor sentiment.

Investors should look out for commentary from management on research and development and long-term strategy during the second quarter earnings call.

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