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

Last updated: 12:00 24 Sep 2018 EDT, First published: 10:20 24 Sep 2018 EDT

A collection of eyes
Alexion is a commercial-stage biotech company.

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 as it raised its price target for the stock, 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. "As such, we are adding NMOSD to our model and raising our price target to $165 from $160."  

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 5% to trade late on Monday at $128.03, 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.

Baird said "management highlighted the compelling results and the high unmet need with plans to quickly engage with regulators and file for Soliris in NMOSD."

Baird added that "we expect the ultimate market opportunity to depend on the label and conservatively assume a launch in 2020 and a peak market opportunity of $450 million."

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.

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