With Just One Drug Alexion Increases Net Income

Alexion only has one approved product, but sales from it increased the company's revenue by 47% year over year in the first quarter.

Just like in the fourth quarter of 2011, Alexion Pharmaceuticals’ (ALXN) Soliris buoyed the company. The rare blood disorder treatment is the company’s only approved product and its sales made Alexion’s first quarter net income increase by 69%.

Soliris treats paroxysmal nocturnal hemoglobinuria. In late 2011 the drug also was approved as a treatment for atypical hemolytic uremic syndrome, which can lead to kidney failure and death.

“The absence of competition bodes well for the initial sales ramp of Soliris for the new indication,” according to

Zacks

.

Soliris sales make up all of Alexion’s revenue, which rose by 47% year over year to $244.7 million, and the company reported continued steady growth of patients

“As we look ahead to serving more patients with PNH and aHUS, we will simultaneously drive forward each of our eight lead development programs in which we are now investigating five highly innovative biologics as treatments for patients with severe and ultra-rare disorders,” said Leonard Bell, M.D., chief executive officer of Alexion, in a statement.

O

ne of the new drugs is asfotase alfa in late-stage development for hypophosphatasia. But Alexion is also looking for more uses for Soliris with acute humoral rejection, myasthenia gravis, STEC-HUS and neuromyelitis optica.

“Currently, there are no approved treatments for any of these disorders and the successful development of Soliris for one or more of these indications will further help expand the market potential of the drug,” according to Zacks.

Last week, before Alexion’s earnings report was released, Zacks had upgraded the company from Neutral to Outperform. Zacks expects “Soliris sales to exceed $1 billion in 2012.”

Alexion raised its 2012 revenue guidance from the range of $1.04 to $1.07 billion up to the range of $1.065 to $1.085 billion because of the continued global growth of Soliris.

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