Is Alexion Pharmaceuticals (NASDAQ:ALXN) Stock A Good Investment?

- August 21, 2017

The HADE Platform’s research arm, NIC, is predicting Soliris sales of more than $3.6 billion in 2018. Soliris had sales of $2.84 billion last year, so the increase could bode well for an ALXN stock that has fallen from a peak of $200 to just $135 today.

Not to mention, for the first time in Alexion Pharmaceuticals (NASDAQ:ALXN) history, the company has diversification. While Soliris is the overwhelming majority of Alexion’s total revenue, the company has found new revenue channels in recent quarters.

Source: The HADE Platform

 

Theoretically, better diversification makes ALXN stock a safer investment. However, Strensiq and Kanuma don’t have near the long-term upside potential. In fact, Strensiq sequential growth is already slowing to mid-single digits.This means best case Alexion Pharmaceuticals (NASDAQ:ALXN) is a company with low double digit growth for the next two years, even with two new drugs.

Yes, ALXN stock has fallen over the last couple years, but it is by no means cheap.

Source: The HADE Platform

When it comes to basic valuation metrics like forward P/E, price/FCF, and price/sales ratios, ALXN stock is middle of pack against its peers.

We believe Celgene is a better bet. It has a deeper pipeline, more robust growth, and is cheaper. Otherwise, there is nothing about Alexion stock that really stands out as it being a great investment opportunity.

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