J.P. Morgan Initiates Coverage on Alexion Pharmaceuticals

J.P. Morgan Chase & Co. is out with a research report on Alexion Pharmaceuticals

and is initiating coverage with an Overweight rating and a $81 price target on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "price target of $81. Alexion has executed one the most successful launches in the orphan disease space with lead drug Soliris. Soliris is indicated for the treatment of several ultra-rare blood disorders, which if left untreated can lead to anemia, clotting and death. Following its initial approval in 2007 for a disease called PNH, Soliris has more recently garnered approval for a second condition called aHUS. Strong new patient starts, an impressive global rollout and a high price point (>$400k) have contributed to an 85% sales CAGR from launch to YE11e. Looking forward, we are bullish on Soliris growth given 1) a lot more growth left in the core PNH indication from new launch countries, 2) a larger-than-expected peak opportunity in aHUS, 3) new indications in the coming years such as kidney transplant, MG and NMO that carry a high probability of clinical success, and 4) strong leadership, with management that has consistently “beat and raised.” On an NPV basis, we estimate that just the core PNH/aHUS indications for Soliris support our $81 target (+33% upside), but new indications could add another ~$22/share. Accordingly, we believe ALXN shares are attractive at current levels." Shares of ALXN lost $3.19 yesterday to close at $60.87, a loss of 4.98%.