Alexion Pharmaceuticals, Inc. ALXN 1.06% announced that Soliris has failed to meet primary endpoints in a Phase II/III study related to the prevention of delayed graft function in adult recipients of diseased-donor kidney transplants who have elevated risk of disease.
Soliris failed to achieve a statistically significant reduction in DCF incidents compared to a placebo.
Despite the disappointing news, several Wall Street analysts remain bullish on Alexion stock.
Voices From The Street
Leerink analyst Geoffrey Porges is more concerned with Alexion pouring money and resources into research that offers limited value for shareholders.
“The failure of Soliris for the prevention of delayed graft function (DGF) after kidney transplantation does not materially impact our long-term Soliris forecasts for growth rate, but does represent another example of Alexion ploughing Soliris profits into high risk trials for low value indications,” Porges explained.
Leerink maintains an Outperform rating and $211 price target for Alexion.
BMO Capital Markets analyst Ian Somaiya has reduced the firm’s price target for Alexion from $171 to $165 following the trial failure, but he believes investors should be buying any potential dips in the Outperform-rated stock.
“We therefore recommend…
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!