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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