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The Key To Alexion's Long-Term Upside Potential, According To Credit Suisse

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The Key To Alexion's Long-Term Upside Potential, According To Credit Suisse

Shares of Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) have lost more than 10 percent over the past year, but one analyst is confident enough to call for upside to the stock.

The Analyst

Credit Suisse's Martin Auster initiated coverage of Alexion Pharmaceuticals' stock with an Outperform rating and $147 price target.

The Thesis

Investors had valid concerns throughout 2017, but now the company is well positioned for 2018 and beyond for fours reason, Auster said in a note.

The launch of Alexion's Soliris gMG will start to build momentum as there are approximately five thousand severe, refractory patients with no other approved treatment option in the U.S. While sales will see momentum in 2018 it will have a "more impactful" contribution in 2019 and eventually reach peak sales of $1 billion.

Alexion's 1210 trial program has consumer more than 300 new or existing commercial patients and the impact was a headwind in 2017. This will likely reverse in 2019 with 1210's expected approval and create a "tangible beneficial effect."

Alexion's therapy for the treatment of hypophosphatasia is unfairly "overlooked" by investors, Auster said. But in reality it's been "one of the most successful ultra-orphan drug launches ever."

Investor expectations for Alexion's phase 3 data in relapsing neuromyelitis optica (NMO) is "mixed" but the stock's present valuation is assigning l"little value" to the therapy which has a 50 percent probability of success and could see peak unadjusted sales of $700 million.

Price Action

Shares of Alexion Pharmaceuticals were trading lower by more than 1 percent at $120.62 Thursday.

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Posted-In: Credit Suisse Martin Auster pharmaceuticals Soliris gMGAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

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