Piper tells investors to ‘just chill’ and buy shares of Alexion on weakness

In a research note titled “Everybody Just Chill: Stock Action Already Pricing In Worst Case Scenario,” Piper Jaffray analyst Christopher Raymond maintains an Overweight rating on shares of Alexion Pharmaceuticals (ALXN) following the institution of Amgen’s (AMGN) inter partes review challenges on three Soliris patents. This morning’s stock action would appear to be pricing in a worst case scenario, Raymond tells investors in a research note. Assuming U.S. Soliris revenue goes to zero after 2021 removes around $8 per share from Alexion’s sum-of-the-parts analysis, claims the analyst. Alexion shares are down 10%, or $11.66, to $100.51 in morning trading. However, this analysis presupposes Amgen will have an approved Soliris biosimilar ready to go in 2021, which would be more of a risk if Amgen “were to actually dose a patient in a study,” says Raymond. With Ultomiris in the process of launching and converting patients faster than expected, Raymond thinks Alexion’s complement franchise “will prove resilient.” As a result, he would buy the stock on today’s weakness.