Alexion Plans to Boost Revenue Guidance, Buy Back $3 Billion of Stock

Alexion Pharmaceuticals  (ALXN) – Get Report shares rose Tuesday after the biopharmaceutical company announced plans to raise full-year revenue guidance by more than $200 million and to execute at least $3 billion of stock buybacks in 2021 to 2023.

The stock was up 2.39% to $118.00 in premarket trading. Shares have climbed 7% year to date through Monday.

Alexion said it has a “robust pipeline of more than 20 development programs across seven rare disease franchises, with expected continued growth from more than five novel investigational new drug applications by 2025.”

That pipeline is up from four at the end of 2017, with “the potential for 10 promising launches by 2023,” the company said.

Alexion said it “continues to expand into additional therapeutic areas as it builds seven rare disease franchises across hematology, nephrology, metabolics, neurology, cardiology, ophthalmology and acute care, which have the potential to deliver more than $10 billion in future peak sales.”

Alexion expects a 2025 revenue target of $9 billion to $10 billion, a 16% compound annual revenue growth rate by the end of 2020 and a CAGR of at least a 10% for revenue through 2025 and beyond.

As for the stock buybacks, the $3 billion would come from “a commitment to dedicate at least one third of annual free cash flow to share repurchases from 2021 through 2023,” the company said.

“We are in a new stage of company expansion and diversification that provides a path to long-term sustainable growth and allows us to reinvest in innovation for the future,” said Alexion CEO Ludwig Hantson.

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