Market Overview

Alexion Reports Second Quarter 2018 Results

Share:
  • 2Q18 total revenues of $1,045.0 million, a 14 percent increase over
    2Q17 and a 16 percent volume increase
  • 2Q18 GAAP diluted EPS of $(2.05) per share; non-GAAP diluted EPS of
    $2.07 per share
  • Filed ALXN1210 submissions for PNH approval in the U.S. and EU and on
    track to file in Japan in the second half of 2018
  • AchR Antibody-Positive Generalized Myasthenia Gravis (gMG) on track to
    be best launch of any Soliris® (eculizumab) indication
  • Updated full year 2018 guidance to reflect the strength of the business

Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) today announced financial
results for the second quarter of 2018. Total revenues in the second
quarter were $1,045.0 million, a 14 percent increase compared to the
same period in 2017. The benefit of foreign currency on total revenues
year-over-year was 1 percent, or $10.9 million, net of hedging
activities. Second quarter revenues include approximately $18 million
due to order timing ahead of the July 4th holiday in the United States.
On a GAAP basis, diluted earnings per share (EPS) in the quarter was
$(2.05) per share, a 381 percent decrease versus the prior year,
inclusive of $803.7 million of expense related to the value of the
in-process research and development asset acquired in connection with
our acquisition of Wilson Therapeutics AB in the second quarter of 2018.
Non-GAAP diluted EPS for the second quarter of 2018 was $2.07 per share,
a 33 percent increase versus the second quarter of 2017.

"In the second quarter of 2018, we are pleased to have once again
delivered strong top and bottom-line growth," said Ludwig Hantson,
Ph.D., Chief Executive Officer of Alexion. "We see continued momentum
from both our in-line business and our gMG launch. We have advanced our
ALXN1210 programs with the goal of improving the standard of care for
patients and have filed regulatory submissions for PNH in the U.S. and
EU, and pending regulatory approval, plan to launch next year. We also
completed the Wilson Therapeutics acquisition and began a collaboration
with Complement Pharma, important initial steps in building out our
clinical pipeline. In light of our financial performance, we have
updated guidance to reflect the strength of our business."

Second Quarter 2018 Financial Highlights

  • Soliris® (eculizumab) net product sales were $898.2
    million, compared to $813.3 million in the second quarter of 2017,
    representing a 10 percent increase. Soliris® volume
    increased 11 percent year-over-year.
  • Strensiq® (asfotase alfa) net product sales were $125.1
    million, compared to $83.6 million in the second quarter of 2017,
    representing a 50 percent increase. Strensiq® volume
    increased 55 percent year-over-year.
  • Kanuma® (sebelipase alfa) net product sales were $21.4
    million, compared to $15.3 million in the second quarter of 2017,
    representing a 40 percent increase. Kanuma® volume
    increased 51 percent year-over-year.
  • GAAP cost of sales was $95.3 million, compared to $83.6 million in the
    same quarter last year. Non-GAAP cost of sales was $89.3 million,
    compared to $78.0 million in the same quarter last year.
  • GAAP R&D expense was $173.4 million compared to $198.2 million in the
    same quarter last year. Non-GAAP R&D expense was $158.3 million,
    compared to $177.6 million in the same quarter last year.
  • GAAP SG&A expense was $277.3 million, compared to $265.6 million in
    the same quarter last year. Non-GAAP SG&A expense was $230.4 million,
    compared to $227.5 million in the same quarter last year.
  • GAAP acquired in-process research and development expense was $803.7
    million, compared to $0.0 million in the same quarter last year,
    related exclusively to the value of the in-process research and
    development asset acquired in connection with the Wilson Therapeutics
    AB acquisition completed in the second quarter of 2018.
  • GAAP income tax expense was $38.8 million, compared to $41.1 million
    in the same quarter last year. Non-GAAP income tax expense was $77.1
    million, compared to $53.4 million in the same quarter last year.
  • GAAP diluted EPS was $(2.05) per share, inclusive of $803.7 million of
    expense related to the value of the in-process research and
    development asset acquired in connection with the Wilson Therapeutics
    AB acquisition, compared to $0.73 per share in the same quarter last
    year. Non-GAAP diluted EPS was $2.07 per share, compared to $1.56 per
    share in the second quarter of 2017.

Research and Development

  • ALXN1210- Paroxysmal Nocturnal Hemoglobinuria (PNH): Alexion
    submitted applications in the U.S. and the EU for the approval of
    ALXN1210 in patients with PNH. These submissions are based on
    previously announced positive results from Phase 3 studies of ALXN1210
    in complement inhibitor treatment-naive patients and in patients who
    switched from Soliris® to ALXN1210. In both studies, which
    collectively comprise the largest ever clinical program in PNH,
    ALXN1210 administered intravenously every eight weeks, demonstrated
    non-inferiority to Soliris® administered intravenously
    every two weeks, on all 11 primary and key secondary endpoints.
    Alexion also plans to file for regulatory approval in Japan later this
    year. In addition, a Phase 3 study of ALXN1210 in children and
    adolescents with PNH is currently underway.
  • ALXN1210- Atypical Hemolytic Uremic Syndrome (aHUS): Enrollment
    was completed in late May 2018 in a Phase 3 trial of ALXN1210
    administered intravenously every eight weeks in complement inhibitor
    treatment-naive adolescent and adult patients with aHUS. Data from
    this study are now expected in early 2019. Alexion intends to file for
    regulatory approval in aHUS following approval of ALXN1210 in PNH. A
    Phase 3 study of ALXN1210 in children with aHUS is currently underway.
  • ALXN1210- Subcutaneous: In late 2018, Alexion plans to
    initiate a single, PK-based Phase 3 study of ALXN1210 delivered
    subcutaneously once per week to support registration in PNH and aHUS.
  • ALXN1810- Subcutaneous: Alexion filed a Clinical Trial
    Application (CTA) in the EU for subcutaneous ALXN1210 co-administered
    with Halozyme's ENHANZE® drug-delivery technology, PH20,
    and plans to initiate a Phase 1 study in the second half of 2018.
    Pending co-formulation data, this next-generation subcutaneous
    formulation will be called ALXN1810 and has the potential to further
    extend the dosing interval to once every two weeks or once per month.
  • Soliris® (eculizumab)- Relapsing
    Neuromyelitis Optica Spectrum Disorder (NMOSD):
    Enrollment was
    completed in October 2017 in the PREVENT study, a single,
    multinational, placebo-controlled Phase 3 trial of Soliris®
    in patients with NMOSD; Alexion expects to report data by the end of
    2018.
  • WTX101- Wilson Disease: In the second quarter, Alexion
    announced the closing of the tender period for the acquisition of
    Wilson Therapeutics AB, a biopharmaceutical company, based
    in Stockholm, Sweden, that developed novel therapies for patients with
    rare copper-mediated disorders, and assumed control of the company.
    WTX101 is in Phase 3 development as a treatment for Wilson disease, a
    rare genetic disorder with devastating hepatic and neurological
    consequences. WTX101 is a first-in-class oral copper-binding agent
    with a unique mechanism of action to access and bind to serum copper
    and promote its removal from the liver.
  • CP010- Complement Pharma: In the second quarter, Alexion began
    a collaboration with Complement Pharma to co-develop CP010, a
    preclinical C6 inhibitor that has the potential to treat multiple
    neurological disorders.

2018 Financial Guidance

Alexion is increasing revenue guidance, non-GAAP operating margin
guidance, and non-GAAP EPS guidance. Full guidance updates are outlined
below.

    Previous (as of April 26, 2018)     Updated (as of July 26, 2018)
Total revenues $3,925 to $3,985 million

$3,980 to $4,010 million

Soliris revenues $3,380 to $3,420 million

$3,420 to $3,440 million

Metabolic revenues $545 to $565 million

$560 to $570 million

R&D (% total revenues)
GAAP (1) 41% to 44% 20% to 21%
Non-GAAP 18% to 20% 18% to 19%
SG&A (% total revenues)
GAAP 26% to 28% 26% to 27%
Non-GAAP 23% to 24% 22% to 23%
Operating margin
GAAP 8% to 11% 11% to 14%
Non-GAAP 48% to 49% 49% to 50%
Earnings per share
GAAP $1.35 to $1.75 $1.25 to $1.50
Non-GAAP $6.75 to $6.90 $7.00 to $7.15

(1) GAAP R&D (% of total revenues) previously included our preliminary
financial impact for Wilson Therapeutics AB. The actual impact is now
reflected in "Acquired in-process research and development" within the
Statement of Operations and therefore excluded from updated GAAP R&D (%
of total revenues) guidance.

Updated 2018 financial guidance assumes the following:

  • A foreign currency tailwind, net of hedging activities, of
    approximately $25 million.
  • Unfavorable Soliris® revenue impact of $90 to $110 million
    from ALXN1210 and other clinical trial recruitment versus prior year.
  • $803.7 million of expense related to the value of the in-process
    research and development asset acquired in connection with Wilson
    Therapeutics AB.
  • GAAP effective tax rate of 39 to 40 percent; non-GAAP effective tax
    rate of 14.5 to 15.5 percent.

Alexion expects to incur additional restructuring and related expenses
in 2018 of approximately $10 million to $60 million related to the
Company's 2017 restructuring activities. As the Company continues to
execute its strategic business plan and global footprint, we may incur
restructuring expenses that are materially different from the current
estimate.

Alexion's financial guidance is based on current foreign exchange rates
net of hedging activities and does not include the effect of
acquisitions, license and collaboration agreements, intangible asset
impairments, litigation charges, changes in fair value of contingent
consideration or restructuring and related activity outside of the
previously announced activities that may occur after the day prior to
the date of this press release.

Conference Call/Webcast Information:

Alexion will host a conference call/audio webcast to discuss the second
quarter 2018 results today at 8:00 a.m. Eastern Time. To participate in
the call, dial 866-762-3111 (USA) or 210-874-7712 (International),
conference ID 9096048 shortly before 8:00 a.m. Eastern Time. A replay of
the call will be available for a limited period following the call. The
audio webcast can be accessed on the Investor page of Alexion's website
at: http://ir.alexion.com.

About Alexion

Alexion is a global biopharmaceutical company focused on serving
patients and families affected by rare diseases through the discovery,
development and commercialization of life-changing therapies. As the
global leader in complement biology and inhibition for more than 20
years, Alexion has developed and commercializes the first and only
approved complement inhibitor to treat patients with paroxysmal
nocturnal hemoglobinuria (PNH), atypical hemolytic uremic syndrome
(aHUS), and anti-acetylcholine receptor (AchR) antibody-positive
generalized myasthenia gravis (gMG). Alexion also has two highly
innovative enzyme replacement therapies for patients with
life-threatening and ultra-rare metabolic disorders, hypophosphatasia
(HPP) and lysosomal acid lipase deficiency (LAL-D). In addition, the
company is developing two late-stage therapies, a second complement
inhibitor and a copper-binding agent for Wilson disease. Alexion focuses
its research efforts on novel molecules and targets in the complement
cascade and its development efforts on the core therapeutic areas of
hematology, nephrology, neurology, and metabolic disorders. Alexion has
been named to the Forbes list of the World's Most Innovative
Companies seven years in a row and is headquartered in Boston,
Massachusetts' Innovation District. The company also has offices around
the globe and serves patients in more than 50 countries. This press
release and further information about Alexion can be found at: www.alexion.com.

[ALXN-E]

This press release contains forward-looking statements for purposes
of the Private Securities Litigation Reform Act of 1995, including
statements related to updated guidance regarding anticipated financial
results for 2018 (and the assumptions related to such guidance),
Alexion's development plans for ALXN1210 (including the goal of
improving the standard of care), the potential medical benefits of
ALXN1210 for the treatment of PNH, Alexion's future clinical,
regulatory, and commercial plans for ALXN1210 (including the plan to
launch as a treatment for PNH next year), goal of building out the
clinical pipeline, the completion and timing for the release of
information from studies and clinical trials, plans and timing for
regulatory filings and clinical programs for our other product
candidates, potential benefits of ALXN1810, CP010 and other product
candidates, future potential expenses related to restructuring efforts;
and the timing and potential benefits of the acquisition of Wilson
Therapeutics. Forward-looking statements are subject to factors that may
cause Alexion's results and plans to differ materially from those
forward-looking statements, including for example, decisions of
regulatory authorities regarding the adequacy of our research, marketing
approval or material limitations on the marketing of our products,
delays, failure of product candidates to obtain regulatory approval,
delays or the inability to launch product candidates due to regulatory
restrictions, anticipated expense or other matters, interruptions or
failures in the manufacture and supply of our products and our product
candidates, failure to satisfactorily address matters raised by the FDA
and other regulatory agencies, the possibility that results of clinical
trials are not predictive of safety and efficacy results of our products
in broader patient populations, the possibility that current rates of
adoption of Soliris
® in PNH, aHUS or other
diseases are not sustained, the possibility that clinical trials of our
product candidates could be delayed or terminated prior to completion,
the adequacy of our pharmacovigilance and drug safety reporting
processes, the risk that third party payors (including governmental
agencies) will not reimburse or continue to reimburse for the use of our
products at acceptable rates or at all, the possibility that expected
tax benefits will not be realized, assessment of impact of recent
accounting pronouncements, potential declines in sovereign credit
ratings or sovereign defaults in countries where we sell our products,
delay of collection or reduction in reimbursement due to adverse
economic conditions or changes in government and private insurer
regulations and approaches to reimbursement, uncertainties surrounding
legal proceedings, company investigations and government investigations,
including investigations of Alexion by the U.S. Securities and Exchange
Commission (SEC) and U.S. Department of Justice, the risk that
anticipated regulatory filings are delayed, the risk that estimates
regarding the number of patients with PNH, aHUS, gMG, HPP and LAL-D are
inaccurate, the risks of changing foreign exchange rates, risks relating
to the potential effects of the Company's restructuring and relocation
of its corporate headquarters, risks related to the acquisition of
Wilson Therapeutics and the co-development with Complement Pharma, and a
variety of other risks set forth from time to time in Alexion's filings
with the SEC, including but not limited to the risks discussed in
Alexion's Quarterly Report on Form 10-Q for the period ended March 31,
2018 and in our other filings with the SEC. Alexion disclaims any
obligation to update any of these forward-looking statements
to
reflect events or circumstances after the date hereof, except when a
duty arises under law.

In addition to financial information prepared in accordance with
GAAP, this press release also contains non-GAAP financial measures that
Alexion believes, when considered together with the GAAP information,
provide investors and management with supplemental information relating
to performance, trends and prospects that promote a more complete
understanding of our operating results and financial position during
different periods. The non-GAAP results exclude the impact of the
following GAAP items: share-based compensation expense, fair value
adjustment of inventory acquired, amortization of purchased intangible
assets, changes in fair value of contingent consideration,
acquisition-related costs, restructuring and related expenses, upfront
payments related to licenses and collaborations, acquired in-process
research and development assets, impairment of intangible assets, change
in value of equity securities without readily determinable fair values,
litigation charges and certain adjustments to income tax expense. These
non-GAAP financial measures are not intended to be considered in
isolation or as a substitute for, or superior to, the financial measures
prepared and presented in accordance with GAAP, and should be reviewed
in conjunction with the relevant GAAP financial measures. Please refer
to the attached Reconciliations of GAAP to non-GAAP Financial Results
and GAAP to non-GAAP 2018 Financial Guidance for explanations of the
amounts adjusted to arrive at non-GAAP net income and non-GAAP earnings
per share amounts for the three and six month periods ended June 30,
2018 and 2017 and projected twelve months ending December 31, 2018.

Prior year amounts may have been adjusted to conform to current year
rounding presentation.

(Tables Follow)

ALEXION PHARMACEUTICALS, INC.
TABLE 1: CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(unaudited)
   
Three months ended Six months ended
June 30 June 30
2018   2017(1) 2018   2017(1)
Net product sales $ 1,044.7 $ 912.2 $ 1,975.1 $ 1,781.3
Other revenue 0.3   0.5   0.8   1.0  
Total revenues 1,045.0 912.7 1,975.9 1,782.3
 
Cost of sales 95.3 83.6 186.9 152.6
Operating expenses:
Research and development 173.4 198.2 350.0 417.7
Selling, general and administrative 277.3 265.6 534.4 527.4
Acquired in-process research and development 803.7 803.7
Amortization of purchased intangible assets 80.1 80.1 160.1 160.1
Change in fair value of contingent consideration 4.7 24.6 57.4 28.1
Restructuring expenses 10.6 2.9 16.1 26.7
Impairment of intangible assets   31.0     31.0  
Total operating expenses 1,349.8   602.4   1,921.7   1,191.0  
 
Operating (loss) income (400.1 ) 226.7 (132.7 ) 438.7
 
Other income and expense:
Investment income 7.7 4.5 113.5 8.4
Interest expense (25.0 ) (24.8 ) (49.1 ) (48.3 )
Other income (expense) (1.2 ) (0.1 ) 1.3   1.5  
 
(Loss) income before income taxes (418.6 ) 206.3 (67.0 ) 400.3
 
Income tax expense 38.8 41.1 141.3 65.0
       
Net (loss) income $ (457.4 ) $ 165.2   $ (208.3 ) $ 335.3  
 
Earnings (loss) per common share
Basic $ (2.05 ) $ 0.74 $ (0.94 ) $ 1.49
Diluted $ (2.05 ) $ 0.73 $ (0.94 ) $ 1.49
 
Shares used in computing earnings (loss) per common share
Basic 222.6 224.4 222.3 224.5
Diluted 222.6 225.5 222.3 225.7

(1) Prior year amounts may have been adjusted to conform to current year
rounding presentation.

ALEXION PHARMACEUTICALS, INC.
TABLE 2: RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(in millions, except per share amounts)
(unaudited)
   
Three months ended Six months ended
June 30 June 30
2018   2017(7) 2018   2017(7)
GAAP net (loss) income $ (457.4 ) $ 165.2 $ (208.3 ) $ 335.3
Before tax adjustments:
Cost of sales:
Share-based compensation 5.5 3.1 8.8 4.9
Fair value adjustment in inventory acquired 2.5 5.2
Restructuring related expenses (1) 0.5 5.8
Research and development expense:
Share-based compensation 15.1 20.1 30.0 36.3
Upfront payments related to licenses and collaborations 0.5 9.4
Restructuring related expenses (1) 0.1
Selling, general and administrative expense:
Share-based compensation 33.3 38.1 66.4 73.8
Restructuring related expenses (1) 6.5 10.1
Litigation charges (2) 7.1 7.1
Acquired in-process research and development (3) 803.7 803.7
Amortization of purchased intangible assets 80.1 80.1 160.1 160.1
Change in fair value of contingent consideration (4) 4.7 24.6 57.4 28.1
Restructuring expenses (1) 10.6 2.9 16.1 26.7
Impairment of intangible assets 31.0 31.0
Investment income:
Change in value of equity securities without readily determinable
fair values (5)
(100.8 )
Other income:
Restructuring related expenses (1) (0.1 )
Adjustments to income tax expense (6) (38.3 ) (12.3 ) (4.4 ) (39.2 )
Non-GAAP net income $ 471.4   $ 355.8   $ 852.0   $ 671.6  
 
GAAP earnings (loss) per common share - diluted $ (2.05 ) $ 0.73 $ (0.94 ) $ 1.49
Non-GAAP earnings per common share - diluted $ 2.07 $ 1.56 $ 3.76 $ 2.94
 
Shares used in computing diluted earnings (loss) per common share
(GAAP)
222.6 225.5 222.3 225.7
Shares used in computing diluted earnings per common share (non-GAAP) 227.2 228.4 226.8 228.4
(1)   The following table summarizes the total restructuring and related
expenses recorded by type of activity and the classification within
the Reconciliation of GAAP to non-GAAP Financial Results:
  Three months ended   Six months ended
June 30, 2018 June 30, 2018

Employee

 

Asset-

   

Employee

 

Asset-

   

Separation

Related

Separation

Related

Costs

Charges

Other

Total

Costs

Charges

Other

Total

Cost of Sales $ $ 0.5 $ $ 0.5 $ $ 5.8 $ $ 5.8
Research and Development 0.1 0.1
Selling, General and Administrative 6.5 6.5 10.1 10.1
Restructuring Expense 3.1 7.5 10.6 4.1 12.0 16.1
Other (Income) Expense             (0.1 ) (0.1 )
$ 3.1   $ 7.0   $ 7.5   $ 17.6   $ 4.1   $ 16.0   $ 11.9   $ 32.0  
(2)   During the second quarter of 2018, we recorded $7.1 million in
litigation charges in connection with ongoing investigations.
 
(3) During the second quarter of 2018, we completed the acquisition of
Wilson Therapeutics AB. The acquisition was accounted for as an
asset acquisition, as substantially all of the fair value of the
gross assets acquired is concentrated in a single asset, WTX101, an
early Phase III development asset. The value of the acquired
in-process research and development asset related to WTX101 was
expensed during the three and six months ended June 30, 2018 due to
the stage of development of this asset.
 
(4) The change in the expense associated with the fair value of
contingent consideration for the three and six months ended June 30,
2018, as compared to the same periods in 2017 was primarily due to
the timing of increases in the likelihood and anticipated timing of
payments for contingent consideration.
 
(5) On January 1, 2018, we adopted a new standard that changes the
accounting for equity investments and, as a result, we recognized an
unrealized gain of $100.8 million in investment income during the
first quarter and six months ended June 30, 2018, respectively, to
adjust our investment in Moderna Therapeutics, Inc. to fair value.
 
(6) Alexion's non-GAAP income tax expense excludes the tax effect of
pre-tax adjustments to GAAP profit and adjustments to provisional
estimates of the impact of Tax Cuts and Jobs Act we recorded in Q4
2017.
 
(7) Prior year amounts may have been adjusted to conform to current year
rounding presentation.
ALEXION PHARMACEUTICALS, INC.
TABLE 3: RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL GUIDANCE
(in millions, except per share amounts and percentages)
(unaudited)
   
Twelve months ending
December 31, 2018
Low High
 
GAAP net income $ 283 $ 340
 
Before tax adjustments:
Share-based compensation 228 210
Upfront payments related to licenses and collaborations - -
Acquired in-process research and development 804 804
Amortization of purchased intangible assets 320 320
Change in fair value of contingent consideration 67 67
Restructuring and related expenses 92 42
Change in value of equity securities without readily determinable
fair values
(101 ) (101 )
Litigation charges 7 7
Adjustments to income tax expense (104 ) (59 )
   
Non-GAAP net income $ 1,596   $ 1,630  
 
Diluted GAAP earnings per common share $ 1.25 $ 1.50
Diluted non-GAAP earnings per common share $ 7.00 $ 7.15
 
Operating expense and margin (% total revenues)
 
GAAP research and development expense 21 % 20 %
Share-based compensation 2 % 2 %
Upfront payments related to licenses and collaborations - -
Restructuring related expenses   -     -  
Non-GAAP research and development expense   19 %   18 %
 
GAAP selling, general and administrative expense 27 % 26 %
Share-based compensation 3 % 3 %
Restructuring related expenses - -
Litigation charges   -     -  
Non-GAAP selling, general and administrative expense   23 %   22 %
 
GAAP operating margin 11 % 14 %
Share-based compensation 6 % 5 %
Upfront payments related to license and collaborations - -
Acquired in-process research and development 20 % 20 %
Litigation charges - -
Amortization of purchased intangible assets 8 % 8 %
Change in fair value of contingent consideration 2 % 2 %
Restructuring and related expenses   2 %   1 %
Non-GAAP operating margin   49 %   50 %
 
Income tax expense (% of income before income taxes)
 
GAAP income tax expense 40.0 % 39.0 %

Tax effect of pre-tax adjustments to GAAP net income and
adjustments to Q4 2017 tax reform provisional accounting

  (24.5 )%   (24.5 )%
Non-GAAP income tax expense   15.5 %   14.5 %
 
Amounts may not foot due to rounding.
ALEXION PHARMACEUTICALS, INC.
TABLE 4: NET PRODUCT SALES BY GEOGRAPHY
(in millions)
(unaudited)
   
Three months ended Six months ended
June 30 June 30
2018   2017(1) 2018   2017(1)

Soliris

United States $ 395.8 $ 317.8 $ 731.8 $ 605.9
Europe 253.4 248.5 504.2 489.9
Asia Pacific 93.6 80.8 179.1 159.6
Rest of World 155.4   166.2   283.2   341.4
Total Soliris $ 898.2   $ 813.3   $ 1,698.3   $ 1,596.8

Strensiq

United States $ 99.9 $ 70.0 $ 189.1 $ 133.3
Europe 16.4 8.6 30.4 13.7
Asia Pacific 6.3 4.4 12.0 8.1
Rest of World 2.5   0.6   4.3   2.1
Total Strensiq $ 125.1   $ 83.6   $ 235.8   $ 157.2

Kanuma

United States $ 13.0 $ 11.1 $ 24.9 $ 19.8
Europe 5.8 3.3 11.7 5.1
Asia Pacific 1.1 0.6 2.1 1.1
Rest of World 1.5   0.3   2.3   1.3
Total Kanuma $ 21.4   $ 15.3   $ 41.0   $ 27.3
 

Net Product Sales

United States $ 508.7 $ 398.9 $ 945.8 $ 759.0
Europe 275.6 260.4 546.3 508.7
Asia Pacific 101.0 85.8 193.2 168.8
Rest of World 159.4   167.1   289.8   344.8
Total Net Product Sales $ 1,044.7   $ 912.2   $ 1,975.1   $ 1,781.3

(1) Prior year amounts may have been adjusted to conform to current year
rounding presentation.

ALEXION PHARMACEUTICALS, INC.
TABLE 5: CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
   
June 30 December 31
2018 2017(2)
Cash and cash equivalents $ 727.5 $ 584.4
Marketable securities 449.5 889.7
Trade accounts receivable, net 853.7 726.5
Inventories 463.2 460.4
Prepaid expenses and other current assets 342.2 292.9
Property, plant and equipment, net 1,422.6 1,325.4
Intangible assets, net 3,793.8 3,954.4
Goodwill 5,037.4 5,037.4
Other assets 400.5   312.2
Total assets $ 13,490.4   $ 13,583.3
 
Accounts payable and accrued expenses $ 664.0 $ 710.2
Revolving credit facility 250.0
Current portion of long-term debt 28.5 167.4
Current portion of contingent consideration 70.3
Other current liabilities (1) 31.6 74.9
Long-term debt, less current portion 2,564.9 2,720.7
Contingent consideration 156.0 168.9
Facility lease obligation 361.4 342.9
Deferred tax liabilities 464.0 365.0
Other liabilities 132.3   140.2
Total liabilities 4,723.0   4,690.2
Total stockholders' equity (1) 8,767.4   8,893.1
Total liabilities and stockholders' equity $ 13,490.4   $ 13,583.3
(1)   In May 2014, the Financial Accounting Standards Board issued a
comprehensive new standard which amends revenue recognition
principles. We adopted this standard in the first quarter 2018. Upon
adoption of the new standard, we reduced our deferred revenue
balance reported in Other current liabilities by $10.4 million, with
an offsetting increase of $6.0 million in retained earnings due to
the cumulative impact of adopting this new standard. The adjusted
deferred revenue balance, as of January 1, 2018, was $5.5 million.
We recognized this amount in revenue in the first quarter of 2018.
 
(2) Prior year amounts may have been adjusted to conform to current year
rounding presentation.

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