Sunday, May 31, 2015

Alexion Pharmaceuticals Inc ALXN Organic Growth Potential Kanuma, Transforce Inc TFI a powerhouse trucking company acquisitions

Alexion Pharmaceuticals (ALXN) is a global leader in the development and commercialization of transformative therapies for patients with rare diseases.  Since taking over Synageva Biopharma (GEVA) the company now operates in more than 50 countries.

Last year at this time Alexion was rumored as a takeover target - today it is the one doing the takeovers !
transport companies, trucking, eculizumab, rare diseases, organic growth stocks, enzyme replacement, mergers, aquisitions, mergers and acquisitions, alexion pharmaceuticals, alxn, market leader, rare, medical, medicine, ecoli, treatment, kanuma, genetic mutations, shareholders, cost savings, soliris,
ALXN experienced lots of organic growth during the past few years and that isn't expected to change with little to no competition (thanks in part to successful takeover bids for rivals Enobia and Synageva Biopharma Corp (GEVA).  Also notable is that the company has high institutional ownership (97%) meaning that many of its shareholders are leading investment firms.

What is clear is this - the company is growing fast and no wonder

  • it owns the patent rights to three of the hottest (and priciest) drugs on the market for rare diseases: Kanuma (treats LAL a life threatening disease caused by genetic mutations leading to liver and other tissue problems), Soliris ($2 billion in revenue last year just from this one drug) and Eculizumab.  Its latest acquisition has eight other product candidates including one relating to enzyme replacement therapy for patients with MPS a genetic metabolic disease - 30 pre clinical programs in total.
  •  recently initiated multinational trial of Eculizumab for prevention of delayed graft function.
  •  is on an acquisitions spree !  and the takeovers are aggressive and that's leading to more successful bids.
  • June 2015 acquires Synageva for $8.4 billion
  • average price target set by the sixteen major equity research groups is $210.07 or 28% higher than the stock is currently trading at.
  • price remains above the most conservative estimate of $173 set by Citigroup.
  • cost savings from acquisitions will allow it to spend more in the future
  • between June 2014 and March 2015 the company's cash and equivalents rose by 50% to $916.81 million with total debt down 40% to $45.5m and long term debt down to zero.
  • only drawback is that there are dividends.

latest financials
-- 1q2015 Alexion revenue of $600.3 million beats estimates ($594.4 million).  Earnings were as expected ($1.28 vs $1.32 est).


Montreal-based Transforce Inc (TSX:TFI) another growth stock

Canada's largest trucking company has grown into one of North America's three largest transport companies.
  • significant growth stateside in just four years (key acquisitions include Dynamex, IE Miller, Concord Transport).
  • May 20, 2015 - acquires US based Hazen Final Mile, a last minute delivery company.
  • takeover of Contrans Group ($580 million, early 2015) makes TransForce a powerhouse in Canada.
  • unlocking value from its waste management business presents unique opportunity for organic growth.