Alexion Exits 2011 on a Strong Note - Analyst Blog
February 10 2012 - 5:45AM
Zacks
Alexion Pharmaceuticals
Inc.’s (ALXN) fourth quarter 2011 earnings (excluding
special items but including stock-based compensation) of 36 cents
per share beat the Zacks Consensus Estimate by 7 cents and the year
ago adjusted earnings by 14 cents per share. Earnings in the
quarter benefited from increased revenues.
Quarterly
Results
Alexion’s revenues jumped 45.9% to
approximately $227.6 million in the reported quarter driven by
strong Soliris sales. Revenues surpassed the Zacks Consensus
Estimate of $220 million.
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. We remind investors that in
September 2011, the US Food and Drug Administration (FDA) cleared
Soliris for treating children and adults suffering from aHUS.
Soliris was subsequently launched in the country.
The impressive revenues recorded in
the final quarter of 2011 were indicative of the addition of new
PNH patients primarily in the US, Western Europe and Japan. The
launch of Soliris for the aHUS indication also contributed to the
increased revenues recorded in the quarter.
Adjusted operating expenses
(excluding stock-based compensation and other special items) at
Alexion climbed 34.3% to $111.2 million in the reported quarter.
The increase was attributable to a hike in both research and
development (R&D) expenses (26.4%) and selling, general and
administrative (SG&A) expenses (37.8%).
While R&D expenses increased
because of the company’s efforts to develop its pipeline, the rise
in SG&A expenses was attributable to Alexion’s efforts to
expand and the costs related to the preparations for the launch of
Soliris for the aHUS indication.
Annual Results
Alexion earned (excluding special
items but including stock-based compensation) $1.14 per share in
2011, which were 6 cents above the Zacks Consensus Estimate of
$1.08 and 42 cents above the 2010 earnings of 72 cents per share.
Revenues climbed 44.8% to $783.4 million driven by impressive
Soliris sales. Revenues beat the Zacks Consensus Estimate of $775.0
million.
2012
Projection
Apart from announcing financial
results, Alexion provided a bright outlook for 2012. The company
expects to end 2012 with revenues in the range of $1.04-$1.07
billion well above 2011 revenues of $783.4 million. The Zacks
Consensus Estimate of $1.03 billion is just shy of the guidance
range provided by the company.
Alexion expects adjusted earnings
for 2012 in the range of $1.60-$1.70 well above 2011 levels.
Soliris is expected to continue performing well, driving growth at
Alexion. The Zacks Consensus Estimate of $1.51 is below the
company’s guidance range.
Our
Recommendation
Currently, we have a long-term
Neutral recommendation on Alexion Pharma. The stock carries a Zacks
#2 Rank (Buy rating) in the short-run.
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