Wednesday, July 25, 2012

Alexion beats Q2 Expectations with Continued Double-digit Growth


Alexion Pharmaceuticals (ALXN) reported 2Q12 result today, July 25, 2012. Alexion continues to “beat and raise” earnings and estimates alike. Second quarter revenues increased 48% to $274.7MM, compared to $185.7 year-over-year, also exceeding Street Consensus of $263.04MM. Sales growth was attributable to steady additions of new patients in the paroxysmal nocturnal hemoglobinuria (PNH) in their core territories of the United States, Western Europe and Japan. Revenues also experienced increasing sales from new patients focused in the atypical hemolytic syndrome (aHUS) indication. Moreover, EPS beat analyst estimates by $0.10 coming in at $0.47 per share, compared to $0.29 year-over-year. Notably, the company’s cash holdings increased to $806MM from the Q1 balance of $359MM. The company raised net proceeds of $462MM from the sales of 5,000,000 shares, announced on May 23, 2012, in connection with its inclusion in the S&P 500 index. Alexion also reduced total debt from levels of $355MM in Q1 to $228MM. 

Alexion announced that it is raising its 2012 revenue guidance from the previous range of $1.065 – 1.085BN to $1.11BN - $1.125BN. The upward revision is largely due to continued global growth of Soliris in PNH and aHUS. With continued investment in growth in global operations, the company also revised its SG&A from $345 – 355MM to $360MM – 370MM. Consequently, as higher volume sales flows through the PNL, management also raised EPS guidance to $1.78 – 1.88 per share from $1.65 – 1.75. All other 2012 guidance was held the same. 

Finally, CEO Leonard Bell stated that the company has advanced 8 lead development programs which include 5 highly innovative biologics. 



- Shawn Laljit, Healthcare Sector Head

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