Rarity Loves Company
Alexion Pharmaceuticals, Inc. (ALXN) is a biopharmaceutical company. Its marketed product Soliris (eculizumab) is the first and only therapeutic approved for patients with two ultra-rare and severe disorders resulting from chronic uncontrolled activation of the complement component of the immune system: paroxysmal nocturnal hemoglobinuria (PNH), an ultra-rare and life-threatening blood disorder, and atypical hemolytic uremic syndrome (aHUS), an ultra-rare and life-threatening genetic disease.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'ALXN'" symbolprices="190" div_align="right"]
It was just 5 weeks ago that we identified a low valuation on this stock at $157.90. Although our target of $190.00 has been reached quickly, we have no hesitation in taking the profit. Alexion is a great company, but it is a biotech which means that it is inherently volatile.
The Purple Chips valuation range is: LOW $161, HIGH $190
We believe it is better to stand aside and look for better opportunities elsewhere.
HIGH VALUATION IN ALEXION PHARMA AT $189.90 (ALXN-US, $190.29) HALF POSITION
TOTAL RETURN (no dividends) +20.3%
PURPLE CHIPS TARGET: $190.00 POSITION SIZE: HALF (2.5) P/E: 43.7X DIV: N/A MKT CAP: $37B Cash: $1.2B RETURN ON CAPITAL: 32.3% EARNINGS YIELD: 2.2% 5 YR EPS Growth rate*:35.0% P/E/G Ratio: 1.25 EPS: $3.08 2015 EST.: $5.71 2016 EST.: $7.16
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
