Buy Alexion on Weakness After FDA Warning Letter, Suggest Piper Jaffray Analyst

Ian Somaiya, an analyst for Piper Jaffray, suggests buying Alexion

on recent weakness over an FDA warning letter. He believes that Alexion will reach an agreement with the FDA on how to address the warning letter within the next 15 days. Somaiya doesn't think that the warning letter will affect sales of Soliris and expects resolution before the introduction of Shiga, an E-coli drug set to hit the market in 2014. The letter from the FDA was regarding the manufacturing practices over the Soliris drug, but according to management, will not disrupt supply. Piper Jaffray maintains an Overweight rating with a $122 price target. Alexion is currently down ~3.5% to $90.58.