Today’s news: Alexion Pharmaceuticals (ALXN) shares are down 7% as investors worry about a potential pharmaceutical competitor.
Regeneron (REGN), a pharmaceutical company, announced that initial lactate dehydrogenase (LDH) data from a Phase II study of six patients afflicted with paroxysmal nocturnal hemoglobinuria (PNH) showed a positive effect. The data in the study is preliminary and less-than-alarming because many necessary facets of a successful and competitive drug study were neither examined nor reported on. The six patients were not as seriously ill as patients would need to be in order to produce a result that potentially threatens Alexion’s Soliris/Ultomiris.
The study’s estimated primary completion date is 2021.
The reason that Alexion’s (ALXN) shares are falling is because Soliris/Ultomiris treat PNH, so investors are worried that Regeneron will produce a viable drug that competes with Soliris/Ultomiris.
ALXN is an undervalued growth stock. My guess is that the shares could drop to short-term price support at 106, and that they would soon recover. Buy ALXN now. Strong Buy.