Alexion Pharmaceuticals to get boost from strong Phase 3 results to treat optic/nerve inflammation, says Baird

The top-line results from the Phase 3 study for Soliris by Alexion Pharmaceuticals Inc (NASDAQ:ALXN) to treat neuromyelitis optica spectrum disorder (NMOSD) were positive and came in better-than-expected, providing a boost for the company going forward, a report by Baird Equity Research said on Monday.

The study met the primary endpoint demonstrating that Soliris reduced the risk of NMOSD relapse by 94.2% compared to a placebo along with a consistent safety profile. NMOSD is a rare, relapsing autoimmune disorder that causes inflammation in the optic nerve and spinal cord.

“Overall, we are encouraged by the robust results that support expansion of Soliris into NMOSD, a rare disease with a high unmet need,” Baird senior analyst Michael Ulz said in a research note to clients. 

Based on these results, regulatory filings are expected in the US, Europe and Japan, he said.

READ: Alexion Pharma shares rise as new blood disease drug sails through key Phase III trial

Shares of Alexion gained almost 4% to trade at $126.83, having hit a session high of $130.49.

Expectations heading into the study were low because management characterized it as “high risk” given advancement into Phase 3 was supported only by a small open-label study.

“As such, we expect Alexion shares to react positively to the news and we reiterate our Outperform rating,” Baird stated.

The research brokerage set a price target of $160, which is derived through a sum-of-the-parts NPV analysis, including sales for Soliris until 2030, and sales for other drugs such as Strensiq and Kanuma until 2026. Baird applied a discount rate of 8%, which they feel is reflective of the risk for commercial-stage biotech companies.

Alexion is a commercial-stage biotech company focused on the discovery, development, and commercialization of treatments for patients with rare and ultra-rare diseases.

The company is based in Boston, Massachusetts.

Story by ProactiveInvestors