SMITHFIELD – New Haven, Conn.-based Alexion Pharmaceuticals Inc. reported a 17 percent year-over-year decline in net income for the 2017 third quarter to $78 million, or 35 cents per diluted share, which fell 7 cents over the year.
The biopharmaceutical company that focuses on drugs for rare diseases increased third-quarter revenue by 7.5 percent year over year to $859 million, with net product sales of its drugs increasing across the board.
“Alexion delivered strong commercial, R&D and financial performance in the third quarter of 2017. We received regulatory approvals for the third indication for Soliris in the U.S. and European Union, strengthened our patent portfolio with three new U.S. patents for Soliris that extend protection into 2027, reached new funding agreements in key European countries for Strensiq and Kanuma, and advanced the ALXN1210 clinical development programs,” said Ludwig Hantson, CEO of Alexion.
The company’s expenses increased 13.3 percent year over year for the quarter to $622 million, driven by $72 million in restructuring costs. Alexion reiterated that it is committed to closing its Smithfield manufacturing plant as it announced in September as part of company restructuring. The company announced at the same time that is was relocating its headquarters from New Haven to Boston next year.
The restructuring “aligns the global organization with our strategy, and we expect to deliver significant savings,” said Hantson. “We enter the fourth quarter of 2017 in a position of strength and are confident in our strategic plan to build long-term sustainable value for shareholders.”
Sales of Soliris, a “complement inhibitor” approved for treatment of multiple conditions, increased $28 million year over year to $758 million in the quarter. Sales of Strensiq, a drug used to treat perinatal/infantile- and juvenile-onset hypophosphatasia, increased $26 million year over year to $87 million in the quarter.
The company also announced that the warning it had received in march 2013 from the U.S. Food and Drug Administration regarding compliance with “Good Manufacturing Practices” at the company’s Smithfield plant had been resolved.
Chris Bergenheim is the PBN web editor.
