FBR Capital Starts Alexion Pharmaceuticals (ALXN) at Underperform; Sees 37% Downside

September 14, 2016 5:29 PM EDT
Get Alerts ALXN Hot Sheet
Price: $135.30 -1.19%

Rating Summary:
    20 Buy, 11 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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FBR Capital initiates coverage on Alexion Pharmaceuticals (NASDAQ: ALXN) with a Underperform rating and a price target of $82.00, suggesting 37% downside.

Analyst Christopher James commented, "We are initiating coverage of Alexion Pharmaceuticals, Inc. (ALXN) with an Underperform rating and a 12-month price target of $82 per share. Alexion, a recognized pioneering biotechnology company, focuses on discovering drugs for patients with ultra-rare disorders. The franchise consists of Soliris (eculizumab), which is the first therapeutic approved for the treatment of both the blood disease paroxysmal nocturnal hemoglobinuria (PNH) and a form of anemia, atypical hemolytic uremic syndrome (aHUS); Strensiq for the treatment of the bone disease hypophosphatasia (HPP); and Kanuma for the treatment of the enzyme deficiency lysosomal acid lipase deficiency (LAL-D). Despite its strong penetration into the ultra-rare orphan drug market and its relatively healthy pipeline, we believe ALXN is currently overvalued at a market capitalization of approximately $29B. While we are bullish on the overall rare disease space, we think ALXN shares are overpriced for the following reasons: (1) Alexion faces a competitive near-term landscape, particularly with Alnylam's ALN-CC5, albeit indirectly; (2) with the recent failed study with eculizumab in refractory generalized myasthenia gravis (gMG), we do not see significant near-term expansion into additional indications; and (3) we see possible additional pressures from pricing and biosimilars, including an Amgen biosimilar product in development."

For an analyst ratings summary and ratings history on Alexion Pharmaceuticals click here. For more ratings news on Alexion Pharmaceuticals click here.

Shares of Alexion Pharmaceuticals closed at $126.79 yesterday.

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