Leerink Swann Maintains an 'Outperform' on Alexion Pharmaceuticals (ALXN); Not a Cheap Acquisition, But Quality of the Asset May Win the Day
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Price: $182.01 --0%
Rating Summary:
10 Buy, 25 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
10 Buy, 25 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Leerink Swann maintains an 'Outperform' on Alexion Pharmaceuticals (NASDAQ: ALXN) price target of $80.00.
Leerink analyst says, "ALXN's pending acquisition of Enobia adds a late-stage biologic for another ultra-rare orphan disease (hypophosphatasia, or HPP) that could reach the market in 2014, further bolstering the growth prospects of ALXN beyond paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS). Although the price tag of $610M cash upfront plus a $470M milestone-based payment is not cheap, likely as a result of competitive bidding, we believe there is a good chance for a positive return. While we await additional information on the management call to get more comfortable with regulatory approval on Phase II data, we are impressed from our initial look by the efficacy and safety profile of ENB-0040. We are lowering our 2012 EPS estimate, as a result of increased R&D expense (majority for inventory build of ENB-0040) as well as interest expense for the acquisition cash outlay." (Leerink lowers FY12 EPS estimate from $1.75 to $1.60)
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 $70.92 yesterday.
Leerink analyst says, "ALXN's pending acquisition of Enobia adds a late-stage biologic for another ultra-rare orphan disease (hypophosphatasia, or HPP) that could reach the market in 2014, further bolstering the growth prospects of ALXN beyond paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS). Although the price tag of $610M cash upfront plus a $470M milestone-based payment is not cheap, likely as a result of competitive bidding, we believe there is a good chance for a positive return. While we await additional information on the management call to get more comfortable with regulatory approval on Phase II data, we are impressed from our initial look by the efficacy and safety profile of ENB-0040. We are lowering our 2012 EPS estimate, as a result of increased R&D expense (majority for inventory build of ENB-0040) as well as interest expense for the acquisition cash outlay." (Leerink lowers FY12 EPS estimate from $1.75 to $1.60)
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 $70.92 yesterday.
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