Soliris continues to deliver good news at Alexion Pharmaceuticals (ALXN). This time, the biopharmaceutical company has lifted its outlook (both for the top and bottom lines) for 2014 following a reimbursement deal with France on Soliris. The upward revision of the already bright outlook sent the shares of the company northward (up 7.11%).
Following the conclusion of reimbursement related discussions with the French government, the company expects revenues for 2014 in the range of $2.15 billion – $2.17 billion (previous guidance: $2 billion–$2.02 billion). According to the deal, Alexion will record approximately $88 million additional sales in the first quarter of 2014 pertaining to reimbursement for Soliris sales made before the commencement of this year. The new 2014 revenue outlook includes the $88 million to be received as reimbursement payments.
Alexion also hiked its adjusted earnings guidance. The company now expects 2014 adjusted earnings per share in the band of $4.37 to $4.47 (previous guidance: $3.70–$3.80 per share). The company expects adjusted earnings to be boosted by 37 cents in the first quarter itself due to the Soliris related reimbursement payments on past shipments. The agreement, which follows the 2012 French transparency commission designation, also takes care of reimbursements for new Soliris sales.
Soliris, Alexion’s sole marketed product, is currently approved for 2 indications – paroxysmal nocturnal hemoglobinuria (PNH) and atypical hemolytic uremic syndrome (aHUS). Soliris sales continue to be strong in the first approved indication – PNH. Moreover, sales in the aHUS indication are surpassing expectations. Strong Soliris sales have contributed to the massive 97.7% price appreciation at Alexion over the last 12 months. Estimates too have been on the upswing.
Alexion holds a Zacks Rank #1 (Strong Buy). Companies like Gilead Sciences (GILD), Alkermes (ALKS) and Biogen Idec. (BIIB) carry the same rank as Alexion.
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