APLS - Alexion Pharmaceuticals: Patent Resolution Is Too Little Too Late
Investment Thesis
The patent disputes over its leading revenue generator have taken its toll on Alexion Pharmaceuticals, Inc. (ALXN), with its share price lagging the peers as the company attempts to diversify the top-line. The recent acquisitions, driven by the rising cash flows and low gearing, are, however, unlikely to further benefit the record-breaking revenue growth any time soon. Having already converted a majority of patients to the replacement therapy, the eventual resolution to U.S. revenue dispute looks too late. Meanwhile, with patient-friendly and more affordable candidates, the rivals are targeting the less