Here’s Is Why You Should Buy Alexion Pharmaceuticals, Inc. (ALXN)

Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) is getting investors’ attention amid a massive growth potential. The Connecticut-based pharmaceutical company is expected to receive an approval from European Commission for its blockbuster drug Soliris for expansion in Europe. In June, Alexion Pharmaceuticals received a positive opinion from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency for its Soliris drug. The committee gave a green signal to use Soliris as a treatment of generalized myasthenia gravis (gMG) in patients who are anti-acetylcholine receptor (AChR) antibody-positive.

There are some concerns dogging the stock after the company came into investigation from US regulatory authorities, but these fears will abate. Bloomberg recently reported that Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) was being investigated related to matters concerning the company’s charity to Medicare patients. Investors’ concerns were exacerbated after the resignation of CEO David Hallal and CFO Vikas Sinha. Alexion admitted that its inappropriate business conduct had an impact on its calculation of 2015 sales. However, analysts think that the regulatory problems of Alexion will be solved by the end of 2017.

Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) makes Soliris, a drug to treat paroxysmal nocturnal hemoglobinuria and atypical hemolytic uremic syndrome. Soliris is one of the most expensive drugs in the world, which costs around $500,000-$700,000 a year. Alexion also sells Strensiq for the treatment of pediatric-onset hypophosphatasia (HPP) and Kanuma for the treatment lysosomal acid lipase deficiency (LAL-D).

Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) has beaten consensus estimates on three out of the last four quarters. In July, the company posted second quarter earnings. Alexion earned $1.31 per share in the quarter, better than the Zacks estimate of $1.08 EPS. Revenue in the quarter came in at $912 million, compared to the consensus estimate of $848 million. Sales of Soliris increased by 16% in the quarter to reach $814 million. Alexion also increased its revenue and earnings guidance for 2017. The company now expects EPS of $5.40 to $5.55, up from previously guided $5.40 to $5.30. Revenue in the year is expected to come in at $3.45 to $3.53 billion, compared to the prior estimate of $3.4 to $3.5 billion.

Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) is actively working to diversify its business and slash its reliance on Soliris. The company bought Synageva in 2015 for $8.4 billion. This deal made Alexion the owner of the famous drug Kanuma. The addition of Kanuma to Alexion portfolio makes the company’s metabolic business spectacular, as it already makes Strensiq, whose sales are rising worldwide.

The stock is up more than 13% year-to-date. There is no valuation risks. The stock’s 52-week high is $145, while the current price is $138. The current price has the worst case scenarios baked in.

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