Piper Jaffray Reports 1Q Earnings On ALXN

Piper Jaffray, reporting 1Q earnings results on Alexion Pharmaceuticals ALXN, is maintaining its Overweight rating and its $119 price target. According to Piper Jaffray, “Alexion's 1Q11 EPS of $0.59 was $0.08 above Street as Soliris sales growth remains strong (+41% y/y) despite inconsistencies in treatment of Japanese patients. Management reiterated their recent upwardly revised 2011 revenue guidance ($720mn-$740mn), which takes into account the impact of March's Japanese earthquake. Although the company expects 2Q11 earnings to be impacted, the quake is not likely to dull Soliris's growth beyond two quarters as international expansion continues. With likely 4Q11 U.S. approval in aHUS largely reflected in shares, we believe upside will be driven by the readout of nine P2 trials in 2H11. In the near-term, we expect Street estimates for Soliris to be revised higher as consensus numbers continue to more accurately reflect the worldwide potential for Soliris in PNH and aHUS and as they begin to incorporate sales for the prevention of acute transplant rejection, a >$400mn opportunity, which could be realized by 2014.” ALXN closed last Thursday at $99.76.