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May 6, 2020

Alexion sees profit, revenue growth in Q1

PHOTO | Contributed Alexion, AstraZeneca Rare Disease's research facility at 100 College St. in New Haven.
By Natalie Missakian

Alexion Pharmaceuticals saw higher first-quarter profits and a 27% bump in revenues compared to a year ago, but the drugmaker said Wednesday it would lower its 2020 earnings expectations due to potential fallout from COVID-19.

For the first three months of the year, Alexion reported adjusted earnings of $3.22 per diluted share, compared to $2.39 per diluted share during the first quarter of 2019. 

The Boston-based biotech, which has a large research presence in New Haven, reported $1.44 billion in first-quarter revenues, compared to $1.14 billion in the year ago period. 

The 27% increase was driven mostly by higher sales volume across its drug portfolio, including its chief money-maker Soliris and newly approved successor, Ultomiris.

Alexion said sales for Soliris grew 6% to $1.02 billion, even as many of its rare-blood-disease patients switched to the newer drug. Ultomiris brought in $223 million, up from $25 million a year ago. Sales of Strensiq and Kanuma grew 29% to $199 million.

The results beat Wall Street analysts’ projected earnings of $2.70 a share and projected revenues of $1.35 billion, according to Zacks Investment Research.  

“We had a strong first quarter across our global commercial business, driven by substantial growth in the number of patients we’re treating with our medicines,” said CEO Ludwig Hantson in a statement. “We also made significant progress diversifying our portfolio through business development.”

Alexion closed on its $930 million acquisition of fellow New Haven-born biotechnology company Achillion during the quarter, and on Tuesday announced a deal to buy San Francisco-based drugmaker Portola for $1.4 billion.

The company, however, lowered its financial guidance for 2020, anticipating potential business impacts from the COVID-19 pandemic.

Alexion said it expects full-year revenues of $5.23 to $5.33 billion, down slightly from its earlier projection of $5.5 to $5.56 billion. It expects 2020 adjusted earnings of $10.45 to $10.75 per share, down from previous projections of $10.65 to $10.85 per share.

Alexion said while there would be little impact on the timing of fully-enrolled trials amid the global pandemic, it expects at least a three-month delay in trials that are still enrolling, or have yet to enroll, patients. The company said it has also temporarily paused trials with healthy volunteers.

Alexion’s stock was trading at $95.10 late Wednesday morning, down 3% from Friday’s close of $98.25.

Contact Natalie Missakian at news@newhavenbiz.com.

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