Thursday, October 25, 2012

Alexion Pharmaceuticals (ALXN) 3Q12 Earnings

Yesterday, October 24th, Alexion Pharmaceuticals released its earnings for the 3Q12. Overall, the company had positive results showing improvements from the last quarter. Through the sale of their only commercialized drug, Soliris, ALXN increased sales 44% year-over-year to $294.1 MM, marginally about Street estimates of $293.1MM. The main driver for this was the addition of new patients diagnosed with PNH in their core territories of the U.S., Western Europe, and Japan. The increase in PNH patients demonstrates the efficiency of ALXN's disease awareness program. Top-line also benefited from the commencing of Soliris sales in the aHUS indication. Approval for Soliris for the treatment of aHUS in Japan should be complete in 2013. Alexion is further looking to extend the approval for Soliris in other emerging markets such as Brazil and Turkey. Furthermore, the company reported a 66% increase of non-GAAP net income to $120.7MM, or $0.60 per share, beating Consensus by $0.13. On the balance sheet, the company had $905.5MM in cash and cash equivalents, compared to $806.2MM in Q2 2012.  Alexion has also reduced total debt to $161.0MM from $228.0MM in Q2. The goal of the company for the fourth quarter of 2012 is to continue to serve the increasing amount of patients diagnosed with PNH and aHUS globally, and continue to research and develop treatments for patients with severe and ultra-rare disorders. Alexion is currently leading development programs consisting of five therapeutic candidates, including Soliris, investigating across eight disorders beyond aHUS and PNH.

For 2012, Alexion is raising its revenue guidance from about $1.110-1.125B to $1.120- 1.130B as a result of the ongoing launch of Soliris globally. The company is reducing its ranges for SG&A, R&D, cost of sales, and tax rate.  Guidance for the 2012 EPS is being raised from $1.78-$1.88 to $1.99-$2.04 per share. Shares outstanding are expected to be approximately 201MM for the full year. With the expansion of Alexion’s global platform of Soliris, and advancing pipeline, the company should continue to benefit, and increase revenue into the final quarter of 2012.

Notably, analysts expect full year earnings of $1.90 per share on revenues of $1.13B.

- Monica Kotowski

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