Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)

Cramer's best stock to own for 2012

After a 60% run-up, this volatile stock seems due for a fall. TM P/E of 82.96 with expected earnings growth of 31.54% taking it to a forward P/E of 38.81 next year. ALXN also trades at a premium to S&P500 TTM P/E. The PEG stands at 2.24, this could suggest some overvaluation. The Price/Book is 11.62.

There are currently 255 ALXN shares in my "fund" with break-even of around 46.43 USD.
http://caps.fool.com/Blogs/fund-trades/678775.

just following the trend...

Increasing sales and margins screen. (master list).

soaring to the moon!!

The long-term potential growth for this company is astronomical... They seem to have incredible moment at this point, and is closely linked to stock-market turbulence. Very excited for this companies potential, and am buying in for the long hall.

Generic dtugs

9 times book value!

ibd

wall street transcript top pick

Found this stock with a screen that looks for stocks that are stratospherically valued based on high expectations. CAPS score of 2 is higher than expected, which indicates that somebody likes this stock at this price. The deciding factor for me was the negative commentary from ZZLangerhans.

biotech spec 3

Upcommimg biotech with a first in class drug due to expand its fda indications. They have pricing power, an off the beaten path pipeline, international presence and good marketing reach in the US. They face no competition for their indications, think Genzyme, only more focused. Could be an acquisition too.

Alexion is one of the most bizarre stories in biotech, building a 4.4B cap on the back of a single medication for a disease that only an estimated 10000 people in the entire world suffer from. By charging an enormous 400K/yr premium they have established a theoretical limit of 4B/yr in revenue. Their projected revenues for 2010 are 500M and the market clearly expects them to proceed northward from there, having awarded them a P/E of 30 based on estimated 2010 earnings.

However, there are some signs of shakiness at these lofty levels as the share price actually dipped briefly after the company reported their 2010 projections. While 4B/yr is a theoretical limit, it is doubtful that Soliris sales will ever come close to that number given the substantial portion of the PNH population that lives in the third world. In China, India, and Africa few lives are worth 400K/yr to the powers that determine the provision of health care resources. And even in the US and Europe, it's unclear if Alexion really pulls in the full 400K per patient or if they are subsidizing the treatment costs somehow.

At some point skepticism has to set in and the market cap must stop growing unless Alexion can come up with a second act for Soliris, which seems unlikely in the near future. Of course, given the lack of data at hand for the current number of patients under treatment with Soliris, that point remains uncertain.

Russell 2000 long term growth 31-173%

earnings

eps is growing rapidly. good roe.

All you need to do is wait, Japan will be on board in 2010. Earnings will just keep growing for the next two years. No matter the economy. During this time just relax and wait for the stock to go up.