Alexion Pharmaceuticals Inc. 's ( ALXN ) fourth quarter
2012 earnings (excluding special items but including stock-based
compensation expense) of 54 cents per share beat the Zacks
Consensus Estimate by 7 cents and the year-ago adjusted earnings by
18 cents per share.
Higher product sales boosted fourth quarter earnings. Including
one-time items, fourth quarter 2012 earnings came in at 40 cents
per share, up 60%.
Alexion's revenues jumped 41% to approximately $320.5 million in
the final quarter of 2012 driven by strong Soliris sales. Revenues
surpassed the Zacks Consensus Estimate of $317 million.
Full year earnings (excluding special items but including
stock-based compensation expense) came in at $1.86 per share, 6
cents above the Zacks Consensus Estimate and 63.2% above the
year-ago earnings. Revenues increased 44.8% to $1.13 billion
in 2012, in line with the Zacks Consensus Estimate.
Alexion's only marketed product, Soliris, is available for the
treatment of paroxysmal nocturnal hemoglobinuria (PNH), a rare
genetic blood disorder and atypical hemolytic uremic syndrome
(aHUS), an ultra-rare genetic disorder. Soliris continued to
perform well with new patient additions in the PNH indication. The
successful label expansion into the aHUS indication boosted
Adjusted operating expenses climbed 46.8% to $163.2 million in
the reported quarter. The increase was attributable to a rise in
both research and development (R&D) expenses (up 86.6%) and
selling, general and administrative (SG&A) expenses (up 30.6%).
The huge jump in R&D expenses was attributable to the company's
efforts to develop its pipeline.
Alexion currently has several candidates in clinical development
focusing on different areas including hematology, nephrology and
neurology. The company is also working on expanding Soliris' label
into additional indications like Shiga-toxin producing e. coli
hemolytic uremic syndrome (STEC-HUS), acute humoral kidney
rejection (AHR), neuromyelitis optica (NMO) and myasthenia gravis
Alexion's pipeline also includes asfotase alfa
(hypophosphatasia), ALXN1102/ALXN1103 (hematology), ALXN1007
Apart from releasing its financial results, the company provided
guidance for 2013. The company expects to end 2013 with adjusted
earnings per share in the range of $2.82-$2.92. The Zacks Consensus
Estimate of $2.63 per share is below the company's guidance range.
Net product sales are expected in the range of $1.490 -$1.505
Alexion, a biopharmaceutical company, carries a Zacks Rank #2
(Buy). Other well placed biopharma stocks include Array
Biopharma ( ARRY ),
Medivation, Inc. ( MDVN ) and
Targacept, Inc. ( TRGT ). All 3 stocks
carry a Zacks Rank #2.ALEXION PHARMA (ALXN): Free Stock Analysis
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ReportMEDIVATION INC (MDVN): Free Stock Analysis
ReportTARGACEPT INC (TRGT): Free Stock Analysis
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