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Will Soliris & Ultomiris Drive Alexion's (ALXN) Q1 Earnings?
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We expect Alexion Pharmaceuticals, Inc. to surpass estimates when it reports first-quarter 2020 results on May 6, before market open.
The company has an excellent track record, having delivered an earnings beat in the trailing four quarters by 9.12%, on average. In the last reported quarter, Alexion came up with a positive earnings surprise of 3.44%.
Shares of Alexion have lost 1.7% in the year so far against the industry’s growth of 1.9%.
Let’s see how things are shaping up for the quarter to be reported.
Factors at Play
Alexion’s complement franchise consists of key growth driver Soliris, which is approved for the treatment of paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS). Soliris is also approved for the treatment of generalized myasthenia gravis (gMG) in adults who are anti-acetylcholine receptor (AChR) antibody-positive.
Soliris continued to drive growth for the company in the last reported quarter, driven by solid demand for its approved indications, a trend that most likely continued in the to be reported quarter. Label expansion of the drug into additional indications in previous quarters is likely to have boosted sales in the to-be-reported quarter.
In November 2019, Soliris was approved for adults with anti-aquaporin-4 (AQP4) auto antibody-positive neuromyelitis optica spectrum disorder (NMOSD) in Japan. This will be the first full quarter of incremental revenues from this indication from Japan. The drug is also approved in the United States and Europe for this indication. Investors will be keen to know the performance of Alexion’s long-acting C5 complement inhibitor, Ultomiris. Notably, the drug generated sales of $170.2 million in the third quarter, leading to sequential growth. Sales have most likely increased in the first quarter as well. In 2019, the drug was also approved for the treatment of atypical aHUS to inhibit complement-mediated thrombotic microangiopathy (TMA) in adult and pediatric (aged one month or older) patients.
Under its metabolic franchise, Alexion markets Strensiq for the treatment of patients with pediatric-onset hypophosphatasia (HPP) and Kanuma for addressing lysosomal acid lipase deficiency (LAL-D). These drugs are likely to have performed well in the first quarter.
In January 2020, Alexion acquired Achillion Pharmaceuticals, Inc. The acquisition added two clinical-stage, oral, small-molecule Factor D inhibitors to its pipeline. Hence, R&D expenses are likely to have increased as well.
Moreover, investors will be keen to know if the coronavirus pandemic has impacted the demand for the drugs and clinical studies in progress.
Recent Developments
Alexion will initiate a study to evaluate Ultomiris for the COVID-19 infection.
The initiation follows the FDA’s rapid review and acceptance of its investigational new drug (IND) application for Ultomiris in the same indication. The global phase III study will evaluate Ultomiris in a subset of adults with COVID-19, who are hospitalized with severe pneumonia or acute respiratory distress syndrome (ARDS).
The study will begin in May and enroll approximately 270 patients across countries with high numbers of diagnosed cases. The study will evaluate the impact of the drug, which is a biologic medicine, on the survival, duration of mechanical ventilation and hospital stay compared to best supportive care. Investors will look forward to further updates on the same.
Why a Likely Earnings Beat
Our proven model predicts an earnings beat for Alexion this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Alexion has an Earnings ESP of +1.08% as the Zacks Consensus Estimate is pegged at $2.70 and the Most Accurate Estimate at $2.73.
Here are a few other healthcare stocks worth considering, as our model shows that these too have the right mix of elements to beat estimates this time around.
Sage Therapeutics (SAGE - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #2.
Immunomedics, Inc. has an Earnings ESP of 2.82% and a Zacks Rank #3.
Ultragenyx Pharmaceutical Inc. (RARE - Free Report) has an Earnings ESP of 1.32% and a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Will Soliris & Ultomiris Drive Alexion's (ALXN) Q1 Earnings?
We expect Alexion Pharmaceuticals, Inc. to surpass estimates when it reports first-quarter 2020 results on May 6, before market open.
The company has an excellent track record, having delivered an earnings beat in the trailing four quarters by 9.12%, on average. In the last reported quarter, Alexion came up with a positive earnings surprise of 3.44%.
Shares of Alexion have lost 1.7% in the year so far against the industry’s growth of 1.9%.
Let’s see how things are shaping up for the quarter to be reported.
Factors at Play
Alexion’s complement franchise consists of key growth driver Soliris, which is approved for the treatment of paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS). Soliris is also approved for the treatment of generalized myasthenia gravis (gMG) in adults who are anti-acetylcholine receptor (AChR) antibody-positive.
Soliris continued to drive growth for the company in the last reported quarter, driven by solid demand for its approved indications, a trend that most likely continued in the to be reported quarter. Label expansion of the drug into additional indications in previous quarters is likely to have boosted sales in the to-be-reported quarter.
In November 2019, Soliris was approved for adults with anti-aquaporin-4 (AQP4) auto antibody-positive neuromyelitis optica spectrum disorder (NMOSD) in Japan. This will be the first full quarter of incremental revenues from this indication from Japan. The drug is also approved in the United States and Europe for this indication. Investors will be keen to know the performance of Alexion’s long-acting C5 complement inhibitor, Ultomiris. Notably, the drug generated sales of $170.2 million in the third quarter, leading to sequential growth. Sales have most likely increased in the first quarter as well. In 2019, the drug was also approved for the treatment of atypical aHUS to inhibit complement-mediated thrombotic microangiopathy (TMA) in adult and pediatric (aged one month or older) patients.
Under its metabolic franchise, Alexion markets Strensiq for the treatment of patients with pediatric-onset hypophosphatasia (HPP) and Kanuma for addressing lysosomal acid lipase deficiency (LAL-D). These drugs are likely to have performed well in the first quarter.
In January 2020, Alexion acquired Achillion Pharmaceuticals, Inc. The acquisition added two clinical-stage, oral, small-molecule Factor D inhibitors to its pipeline. Hence, R&D expenses are likely to have increased as well.
Moreover, investors will be keen to know if the coronavirus pandemic has impacted the demand for the drugs and clinical studies in progress.
Recent Developments
Alexion will initiate a study to evaluate Ultomiris for the COVID-19 infection.
The initiation follows the FDA’s rapid review and acceptance of its investigational new drug (IND) application for Ultomiris in the same indication. The global phase III study will evaluate Ultomiris in a subset of adults with COVID-19, who are hospitalized with severe pneumonia or acute respiratory distress syndrome (ARDS).
The study will begin in May and enroll approximately 270 patients across countries with high numbers of diagnosed cases. The study will evaluate the impact of the drug, which is a biologic medicine, on the survival, duration of mechanical ventilation and hospital stay compared to best supportive care.
Investors will look forward to further updates on the same.
Why a Likely Earnings Beat
Our proven model predicts an earnings beat for Alexion this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Alexion has an Earnings ESP of +1.08% as the Zacks Consensus Estimate is pegged at $2.70 and the Most Accurate Estimate at $2.73.
Zacks Rank: It currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alexion Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Alexion Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Alexion Pharmaceuticals, Inc. Quote
Other Stocks That Warrant a Look
Here are a few other healthcare stocks worth considering, as our model shows that these too have the right mix of elements to beat estimates this time around.
Sage Therapeutics (SAGE - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #2.
Immunomedics, Inc. has an Earnings ESP of 2.82% and a Zacks Rank #3.
Ultragenyx Pharmaceutical Inc. (RARE - Free Report) has an Earnings ESP of 1.32% and a Zacks Rank #2.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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