Company Description-
Alexion Pharmaceuticals is a biopharmaceutical company focused on serving patients with severe and ultra-rare disorders through the development and commercialization of life-transforming therapeutic products. Through their innovative production of therapeutic products such as Soliris, they hope to treat patients with diseases such as Atypical Hemolytic Uremic Syndrome (a genetic disease in which a deficiency in certain genes affects kidney function) and Paroxysmal Nocturnal Hemoglobinuria (a very rare blood disorder which can lead to the destruction of red blood cells). People with these two diseases often have no treatment options at all, but Alexion’s Soliris gives hope to families who have loved ones battling PHS or AHUS and elongates patients’ lives. Alexion is a fantastic company who is doing their best to change the world, and they have been rewarded by being named # 2 on Forbes list of most innovative companies for the second year in a row.
What is Soliris and why is it so great?-
So what is Soliris? Soliris is the “world’s first and only approved terminal complement inhibitor,” which means that it helps the patient by preventing the body from attacking and destroying red blood cells. Red blood cells are of vital importance to the human body as they deliver oxygen throughout the body and help keep vital organs healthy. Without red blood cells parts of your body can not function correctly and can lead to extreme tiredness, and loss of function within certain parts of the body (such as the kidneys). In preventing the destruction of these blood cells, Soliris helps to keep red blood cells at a normal level within patients who struggle with diseases such as PNH. The main cause of serious health problems with PNH is hemolysis, which is the popping of red blood cells. Treatment using Soliris leads to a decrease in Hemolysis; a decrease in blood clots within patients, and leads to a much lower need for blood transfusions within patients. Without the aid of Soliris, PNH patients require constant blood transfusions in order to replenish their depleted red blood cell count.
The other disease that Soliris helps to treat is Atypical Hemolytic Uremic Syndrome (AHUS). This is a genetic disease which causes blood clots to form in small blood vessels within the kidneys. These clots can lead to kidney failure if they restrict or stop blood flow. It can also cause hemolysis within the blood stream. It also causes Thrombocytopenia, which is when there is a deficiency of platelets within the blood stream because the platelets are stuck and causing blood clots. As mentioned previously, Soliris can help to reduce red blood cell loss and can increase the flow of blood within the body. It prevents blood clots and keeps the organs throughout the body functioning normally.
Stock Analysis-
Alexion Pharmaceuticals is a fantastic company that is a world leader in innovation and is creating waves throughout the medical field. But is it worth investing in? Alexion (ALXN) is currently trading at $150 although it opened today at $153 and was as high as $180 just a few weeks ago. So why has it dropped so significantly in the last two weeks? Some people think that the stock was just falling down to earth as it had previously increased its price from $130 at the start of 2014 to the high of $183.89 that it hit on February 27th. The initial increase was due in large part to good earnings reports for the last quarter combined with the fact that its earnings growth prediction for this year alone is over 40%. This stock has great potential for growth and investors believe it is just a matter of time before it takes off. With great innovation and a high potential for growth I definitely believe that this stock is a strong buy. The company’s revenues have grown more than 30% each of the past two years and that trend is expected to continue. They are also maintaining a lot of their earnings and creating substantial net income, which is not a common thing for pharmaceutical companies who tend to have extremely high R&D costs. The company’s balance sheet is also extremely strong as the increase in assets over the last three years is much greater than the increase in liabilities.
Summary-
Alexion Pharmaceuticals is a company that has seen excellent growth as of recent and will continue to see this growth in the near future. They are a world leader in innovation and are making a difference in the medicinal world. With their fantastic Soliris product, they are helping to treat patients with rare and dangerous diseases and are giving hope to families who have loved ones battling these diseases. At the current price of $150, ALXN is a definite buy and will reap great returns in the future. The high point of $184 that Alexion hit in February was a great step for the company, but based on their growth potential and innovative history, is likely not the highest that Alexion will rise to. If you are looking for a pharmaceutical company that will change the future, and possibly the thickness of your wallet, you should take a serious look at Alexion Pharmaceuticals.