Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) is on its way into establishing a dominant position in a market, which is currently experiencing fierce competition. Following a pivotal Phase 3 study of the company’s ALXN1210, an experimental drug intended to treat a rare blood disorder there was no non-inferiority reported. The drug tested against and surprisingly, the study also revealed a non-inferiority on the four key secondary endpoints.
ALXN1210 treats paroxysmal nocturnal hemoglobinuria (PNH) and the results of the study categorically indicate that it has found favor with the outlined six numeric goals. There are high chances that the drug will eat into Soliris sales given that the company’s shares already rose as much as 12.4 percent to $137.88. If approved, the drug is destined to reduce the number of times for administering Soliris from 26 to six in a year.
The results open a new chapter in Alexion
The drugmaker has been under pressure from Elliott Management, a shareholder seeking to reestablish investor confidence. The company has had an exodus of top management, a situation, which put it in doubt with the shareholders. There was also a scandal involving Soliris.
However, successful development of ALXN1210 should turn things around according to Barclays analysts. They stated, “We believe that these results open a new chapter in Alexion, moving the complement franchise beyond Soliris and reducing the threat of potential competition”
On the other hand, having the two drugs treat the rare illness will help in maintaining the company’s lock on the market for years to come, which will return facilitate solid revenue streams.
Alexion Pharmaceuticals saw a pop in its share price
The news about Alexion’s ALXN1210 was a double blessing because the company’s share price also rose up. The drug held up well against its big money. There are speculations that the launch will come earlier than expected and before the expiration of any Soliris patent. ALXN1210’s symptoms include blood clots (thrombosis), impaired bone marrow function and destruction of red blood cells (hemolytic anemia).