Today, biotechnology leads us to the next level of health, based on traditional Biological Sciences and adding new features from genetics, embryology, chemical engineering, Bioprocess engineering, Information technology and even robotics. The mapping of the human genome a decade ago is opening new worlds as gene therapy and the so-called pharmacogenomics, i.e. the individual drugs. In the past, one cure for all people.
In the future everyone could have an individual treatment plan based on their genetic makeup. Now that is a game-changer!
If you are familiar with bioengineering at all, you know that this has traditionally been a risky field for investment. There were many disappointments along with successes for many years, and I avoided a lot of biotech companies as a result. However, the company in this sector, which is becoming more attractive is Alexion Pharmaceuticals, Inc.in (NASDAQ:ALXN).
The company specializiruetsya on the development of orphan drugs treating patients with severe and life-threatening rare diseases. Orphan diseases got their name because they affect fewer than 200,000 people (e.g., Addison’s, Crohn’s disease, or Hodgkin disease) or a common disease that has been ignored (such as tuberculosis, cholera and malaria), as they are much more common in developing countries than in developed countries.
Orphan drugs to treat these rare diseases, and while they don’t get much attention from clinical research, there are several easier and faster regulatory environment, price and less competition. ALXN may become the main candidate for acquisition in this space, his power production should contribute to its success.
The company receives virtually all of its sales from SOLIRIS, which works on the market since 2007. This drug is used to treat atypical hemolytic uremic syndrome (ahus), a life-threatening disease that is caused by chronic, uncontrolled activation of the immune system and Paroxysmal Nocturnal Hemoglobinuria (PNH) that destroys the red blood cells.
The company has also found good success with Strensiq, which was approved in 2015. Strensiq is an innovative enzyme replacement therapy in patients with hypophosphaturia, metabolic disease of bone tissue.
ALXN came under considerable pressure in recent years, falling from a high of $206 in July 2015 to trade today about 110$. Some of the decline was due to the wider biotech weakness, but it was caused by a failed acquisition, the dismissal of two top managers and investors concerns that competitors will develop biosimilar drugs (biologics, which are almost identical copies of the original drug and generics in the pharmaceutical industry) in the next SOLIRIS drug patents begin to expire in 2022.
The good news is that the leadership is taking the right steps to get the company back on track, which is one of the reasons why I really like ALXN now. I think it will be more shareholder friendly and helpful with their capital, as evidenced by the decision of the Department on work with investor activist Elliott management, which took up a position in ALXN, to fill a vacant spot on the Board. In addition, the new CEO Ludwig Hantson made a hard but right decision about the reduction in the past year the company’s employees 20% of revenues from a disappointing purchase.
The key to future success
The real key to success ALXN, and that can make it a strong target acquisition, Alexion is 1210, the next generation SOLIRIS.
Alexion 1210 is used in combination with SOLIRIS for reduced rates of hemolysis, destruction of red blood cells, patients with PNH and AHUs. Phase I and phase II clinical trials showed the reduction of tiredness and reduce the need for transfusion from patients who were treated with SOLIRIS only. If the phase III clinical trial is continuing this early success, the patent life SOLIRIS be extended and the contest will be disrupted.
While the recent clinical trial results have been mixed — 1210 ALXN met its primary and reduces the need for transfusions compared with SOLIRIS is the only judge, not inferior, not superior overall efficiency. However, I believe that the results are good enough to support the stock at current levels and FDA approval ALXN 1210 needs to obtain stock once again coming in hot.
Hilary Kramer editor, GameChangers, breakout stocks, high octane trader, absolute capital return and cost on. She is experienced in investment and market strategist with more than 25 years of experience in portfolio management, market analysis, shares, trade and risk management. She has extensive experience in global financial management, asset allocation, investment banking and direct investment businesses, and is regularly called on to provide its analysis on Bloomberg, CNBC, Fox Business network and other media.