By Mitchell Young
New Haven: Worry warts that reacted to Alexion Pharmaceuticals, Inc.’s [Nasdaq: ALXN] announcement that it was trimming its world wide work force by 5% will be surprised by the company’s first-quarter 2017 financial results
Revenues rose 24.1% year over year to $870 million, exceeding analysts expectations of $821 million. There was a small benefit from an accounting change, but reveneus increased by 20% organically.
Shares of Alexion were up more than 5% at the end of trading, in response to the better-than expected results.
The news comes at a good time for the stock as drugs competitive to its flag ship product Soliris started getting some headlines with clinical trial announcements. Soliris sales however continued to rise as the company has found new disease treatments for the drug. The best news for investors is that the company’s big acquisition bets [more than $10 billion total] are starting to show up in sales.
Strensiq contributed $74 million, up 124.2% year over year, the drug was obtained in a 2015 acquisition for more than $600 million. Another acquisition drug Kanuma obtained in a $8.4 billion acquisition, contributed $12 million, up by 500% to quarterly revenues.
Alexion has said it expects revenues to be $3.4 to $3.5 billion, with revenues for Soliris sales to be just over $3 billion.
Alexion is continuing to create new clinical trial for Soliris treatments of additional rare disorders, and is awaiting reviews from US and European regulators on another additional use.
Alexion announced the trimming of it workforce days prior to the announcement of the appointment of a new CEO Ludwig Hantson.