Today’s news: Alexion Pharmaceuticals’ (ALXN) U.S. Soliris patent extension to undergo a review; stock moves from Strong Buy to Hold.
On August 23, I issued a bulletin that discussed in part:
“Alexion Pharmaceuticals (ALXN) and Amgen (AMGN) are on opposite sides of an upcoming Sept. 6 decision by the U.S. Patent Trial and Appeal Board (USPTAB). Amgen is seeking an inter partes review of Alexion’s Soliris IP protection, which was previously extended from 2021 through 2027. A decision in favor of Amgen would implement a year-long process during which USPTAB would decide whether to revoke the current Soliris patent extension.”
Today, it was announced that the USPTAB decision to move forward with the one-year review has been made.
A major Wall Street investment firm estimates that if the patent extension on Soliris is removed, it will be at least three years from now before a competitor is ready to market a biosimilar drug.
The stock is down 9% to 102 this morning.
I’m moving ALXN from Strong Buy to Hold, not because I think the company is in trouble, but because the price chart is now bearish. Alexion is still a very undervalued growth stock. As a reminder, I also mentioned on August 23 that I’ve read research comments from two Wall Street firms that Alexion could reasonably be worth $200 in a takeover situation.
I received an investor’s inquiry about buying low this morning. I would not buy low until the price chart stabilizes. Hold.