ALXN stock is up 6% since Alexion Pharmaceuticals (NASDAQ:ALXN) announced its third-quarter results on Wednesday, which saw a 23% year-over-year rise in revenue to $1.26 billion USD.
ALXN Stock Outperforming Industry
Alexion reported Q3 earnings of $2.79 per share, which is a 38% increase from $2.02 in the same period last year and also beat the Zacks Consensus Estimate of $2.49. Moreover, revenues of $1.26 billion USD in the quarter also surpassed the Zacks Consensus Estimate of $1.24 billion USD. Revenues were driven by increased sales of Soliris, which brought in $990.5 million USD in sales in Q3, and its follow up drug Ultomiris. ALXN stock has inched up 2% so far this year compared to the industry’s decline of 2.8%.
In light of the strong quarterly performance, Alexion has raised its revenue and earnings outlook for the year. The company now expects adjusted earnings per share to be between $10.25 USD and $10.40 USD, up from the previous guidance of $9.65 USD to $9.85 USD. Alexion projects revenues of $4.86 billion USD to $4.89 billion USD, up from the prior outlook of $4.75 billion USD to $4.80 billion USD. ALXN shares are trading at $105.16 today.
Last week, Alexion announced that it would acquire rival firm Achillion Pharmaceuticals (NASDAQ:ACHN) in a deal worth $930 million USD. The deal will allow Alexion to consolidate its position as a market leader in developing treatments for rare blood disorders, but it will have to stump up a 73% premium in order to take control of Achillion’s two experimental treatments for paroxysmal nocturnal hemoglobinuria (PNH), a market Alexion has dominated with its flagship drug Soliris. ALXN shares initially dropped following news of the deal before recovering.
“With consistent and strong execution, we have delivered another record performance in the third quarter, building on our momentum from the first half of 2019 […] By continuing to deliver on the ambitious transformation plan we laid out two-and-a-half years ago, we have successfully established a strong foundation for the future and look forward to building on this progress,” said Alexion CEO Dr. Ludwig Hantson.
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