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JP Morgan Moves Alexion Pharma To Overweight, Says Strensiq And Kanuma Are $1.7B Opportunity

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In a report published Monday, JP Morgan analyst Anupam Rama upgraded the rating on Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) from Not Rated to Overweight, with a price target of $249. The analyst believes that the soon-to-be-launched Strensiq and Kanuma products have peak sales capabilities of over $1 billion and over $700 million, respectively.

The analyst expects the company pipeline to diversify Alexion's commercial base in the near future, with the expected product launches of Strensiq, for the treatment of hypophosphatasia, and Kanuma, for LAL deficiency, in the near term.

"Of note, Alexion is entering a data rich 12-24 months, which is underappreciated point, in our view, with multiple proof-of-concept and pivotal trials reading out," Rama stated. More details on the products are expected at the time of the Q2 results announcement.

"The combination of continued execution of Soliris, near-term diversification of commercial product mix, intermediate-term late-stage clinical value drivers, and strong leadership, is the basis of our Overweight rating," the JP Morgan report added.

The analyst believes that Soliris could prove to have "blockbuster" potential for Myasthenia Gravis (MG) and Neuromyelitus Optica (NMO). While data on MG is expected in 2016, data on NMO trials is expected in 2017.

Latest Ratings for ALXN

Mar 2018NomuraMaintainsBuyBuy
Mar 2018Credit SuisseMaintainsOutperformOutperform
Feb 2018BMO CapitalMaintainsOutperformOutperform

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Posted-In: JP MorganAnalyst Color Upgrades Analyst Ratings


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