Alexion Pharmaceutical Overview

Alexion Pharmaceutical

Introduction

Alexion is a biopharmaceutical company focused on developing life-changing therapies for people living with rare disorders worldwide. Alexion Pharmaceuticals is an American pharmaceutical company headquartered in Boston, Massachusetts that specializes in orphan drugs to treat rare diseases. Alexion Pharmaceuticals was founded in 1992 at Science Park in New Haven, Connecticut by Steven Squinto and Leonard Bell, a physician at Yale New Haven Hospital and assistant professor of medicine and pathology at Yale School of Medicine, a company that develops and manufactures drugs to treat diseases.

Some well-known products are Alexion’s products include:

· Soliris (atrial fibrillation)

This has been approved by the FDA for the treatment of patients with chronic atrial fibrillation.

· Plavix (heart attack prevention)

Alexion is currently run by:

· Marc Dunoyer as the Chief Executive Officer.

· Sharon Barr as the Head of Research and Product Development.

· Soraya Bekkali as the International Commercial Operations.

· Sean Christie as the Chief Financial and Administration Officer.

· Shane Doyle.

· Angela Giannantonio.

· Christophe Hotermans.

· Lukasz Jarzyna.

However, in 2000, Alexion moved its headquarters from New Haven to Cheshire, Connecticut

Alexion received U.S. Food and Drug Administration (FDA) approval for Soliris in 2007. It was initially approved to treat paroxysmal nocturnal hemoglobinuria, a rare blood disorder.

In June 2010, there was an outbreak of hemolytic-uremic syndrome caused by Shigatoxigenic and verotoxigenic Escherichia coli (EHEC) in Germany. Soliris was tested as a treatment option because of its effectiveness in treating atypical hemolytic uremic syndrome, an illness similar to that caused by the EHEC infection.

In January 2014, the company paid Moderna $100 million for ten product options to develop rare disease treatments, including for Crigler-Najjar syndrome, using Moderna’s mRNA therapeutics platform. Although Moderna CEO Stéphane Bancel expected the platform to enter human trials in 2016, the program was scrapped in January 2017 after animal trials showed that Moderna’s treatment would never be safe enough for humans.

In April 2015, Bell was replaced as CEO by David Hallal.

In 2016, the company became a member of the Pharmaceutical Research and Manufacturers of America (PhRMA).

Alexion moved its headquarters back to New Haven following the completion of New Haven’s Downtown Crossing project in February 2016.

In December 2016, David Brennan became interim CEO. David Anderson, formerly the CFO of Honeywell, was appointed CFO, replacing Vikas Sinha.

In March 2017, Alexion named Ludwig N. Hantson as its CEO.

In September 2017, Alexion announced it would cut its workforce by 20% and move its headquarters to Boston, Massachusetts in mid-2018.It also announced the closure of its manufacturing facility in Smithfield, Rhode Island.

In July 2020, the company agreed to pay more than $21 million to settle claims that it bribed government officials in Turkey and Russia to gain approval for its drugs.

In July 2021, AstraZeneca acquired the company

Furthermore, some of the company’s acquisitions include:

In September 2000, Alexion acquired Proliferon, a development-stage biopharmaceutical firm, for $41 million in stock. The company was renamed Alexion Antibody Technologies.

In December 2011, Alexion acquired Montreal-based Enobia Pharma, the developer of asfotase alfa, a drug used to treat the genetic disorder hypophosphatasia, for as much as $1.08 billion.

In June 2015, Alexion Pharmaceutical acquired Synageva, a maker of rare disease treatments, in an $8.4 billion stock-and-cash deal.

In April 2018, Alexion Pharmaceutical announced the acquisition of Wilson Therapeutics for $855 million.

In November 2018, the company acquired Syntimmune for $1.2 billion, expanding its rare disease offerings.

In January 2020, the company acquired Achillion Pharmaceuticals for $930 million, boosting its immune system disease pipeline.

In July 2020, Alexion acquired Portola Pharmaceuticals, diversifying its hematology, neurology, and critical care commercial portfolio with Portola’s Factor Xa inhibitor reversal agent.

Down to the company’s review, the reviews of Alexion Pharmaceuticals are generally positive. The company has received high marks for its product quality and efficacy, and reviewers have praised Alexion’s commitment to innovation.

It would also interest you to know that there have been a number of crimes and scandals associated with Alexion in the past. In December 2017, a whistleblower filed a lawsuit alleging that the company misled investors about the safety of its Soliris product. In May 2018, the SEC penalties Alexion for misleading investors about its financial performance.

   Yet one of Alexion’s biggest deals was when the British drugmaker on Saturday announced it is buying U.S biotech Alexion Pharmaceuticals, which makes treatment for a rare immune disease, for $39 billion in cash and stock. Competitive challenges and a wayward M&A strategy have held down the target’s price. That’s an opportunity and a threat for AstraZeneca Chief Executive Pascal Soriot.

Despite recent speculation about big mergers, the Alexion deal is probably not what shareholders were expecting from AstraZeneca. Soriot is busy pushing the group’s fast-growing cancer business and rolling out a vaccine for Covid-19. His target specialises in diseases that affect a small number of people, not one of the $142 billion company’s key strengths.

Yet AstraZeneca’s timing looks smart. Its stock is trading at a hefty 21 times expected earnings for next year, according to forecasts compiled by Refinitiv, giving it a powerful acquisition currency. The chances of healthcare reformers putting serious pressure on drug prices are fading after the recent U.S. election failed to hand Democrats decisive control of the Senate.

Alexion’s unpopularity could also be an opportunity. Though Friday’s closing stock price valued the company at just 9 times forecast 2021 earnings it is still growing quickly, thanks in particular to its expertise in treating paroxysmal nocturnal hemoglobinuria, a disease in which the immune system damages blood cells. It is also throwing off cash.

Analysts expected standalone Alexion to generate almost $4 billion of operating profit by 2023, according to Refinitiv data. AstraZeneca reckons it can add $500 million merger of synergies, most of which are cost savings. Apply Alexion’s 16% tax rate and Soriot will earn a return on his outlay of just below 10%, after deducting expected net cash of $400 million by the end of this year. That’s ahead of Alexion’s cost of capital, which Morningstar estimates at 8.8%.

Alexion Pharmaceutical is cheap for many reasons. It has a history of questionable deals, among them spending $8.4 billion on Synageva in 2015. Alexion thought it was buying a $1 billion plus drug annually, but revenue ended up about a tenth of that. There are also longer-term concerns. Cash cow Soliris, which represents about two-thirds of current revenue, is threatened by new medicines from Roche, as well as looming competition from cut-price duplicates.

Yet Alexion Pharmaceutical may be better able to manage those pressures as part of AstraZeneca. The larger UK group may also open markets such as China. And Soriot hopes Alexion’s technology will work in other less niche conditions. If he’s right, trading a rich stock for a depressed one could be a smart move.

Moreover, Alexion has total revenue of US$6.069 billion, a net income of US$603 million, a total assets of US$18.103, and a total equity of US$11.651 billion all as of the year 2020. The company has also employed a total number of 2525 employees as of 2020.