Company

Bank

Analyst

Coverage

Opinion

Wk chg

7/27 cls

Alexion Pharmaceuticals Inc. (NASDAQ:ALXN)

Deutsche Bank

Robyn Karnauskas

Price target

Buy

10%

$108.97

Jefferies

Eun Yang

Price target

Hold

Leerink

Howard Liang

Price target

Outperform

Stifel, Nicolaus

Stephen Willey

Price target

Buy

Karnauskas raised her target to $112 from $100 after Alexion beat the Street's 2Q12 EPS and revenue estimates and raised its non-GAAP EPS and revenue guidances (see "EPS Watch," A19). Karnauskas now believes the paroxysmal nocturnal hemoglobinuria (PNH) opportunity for Solris eculizumab is larger based on better uptake in emerging markets and Alexion's "consistent ability" to find new patients through increasing awareness of PHN. She raised her peak Soliris PNH revenue estimates to $1.9B from $1.6B in 2018. Soliris is marketed for PNH and atypical hemolytic uremic syndrome (aHUS); both rare blood disorders.

Yang raised her target to $88 from $76 on earnings. She raised her 2012 Soliris sales estimates based on the "better-than-expected" 2Q results to $1.13B from $1.09B. Yang also raised her 2013 GAAP EPS estimate to $2.09 from $1.87 and her 2013 revenue estimate to $1.5B from $1.4B.

Liang raised his target to $125 from $96 on earnings, noting that the strong quarter suggests a new growth trajectory for Soliris. Liang raised his 2012 revenue estimate to $1.13B from $1.08B, and his 2012 EPS estimate to $1.90 from $1.75.

Willey raised his target to $125 from $97 on earnings. He raised his 2013 non-GAAP EPS estimate to $2.99 from $2.77 and his 2013 sales estimate to $1.58B from $1.47B. He now models peak Soliris sales of $3B for PNH and $1.5B for aHUS.

AMAG Pharmaceuticals Inc. (NASDAQ:AMAG)

Summer Street

Carol Werther

Upgrade

Buy (from neutral)

2%

$15.66

Werther also set a $22 target after AMAG reported "solid" 2Q12 sales for Feraheme ferumoxytol and raised its revenue guidance to $55-$58M from $53-$57M. Feraheme revenues for the quarter were $14.1M, up 10% from 2Q11. She expects U.S. Feraheme sales to increase to $120M in 2016 from $58M in 2012 based on a broadened label for the IV iron replacement therapy. Feraheme is approved to treat iron deficiency anemia in chronic kidney disease (CKD) patients, and AMAG plans to submit an sNDA by year end for use of the drug to treat iron deficiency anemia regardless of underlying cause.