Why This Event Could Clear The Deck For An Alexion Takeover: Analyst - (Investor's Business Daily via NewsPoints Desk)

  • Amgen and Alexion Pharmaceuticals are said to have reached an agreement Thursday in a patent battle over Soliris, with the move prompting some analysts to say it could lead to an Alexion takeover, reported Investor's Business Daily.

  • According to CFRA analyst Kevin Huang, the companies agreed to settle claims related to three US patents protecting Soliris, a drug Amgen had hoped to launch a biosimilar version of in 2022.

  • The agreement, reportedly posted by the US Patent Trial and Appeal Board, removes "a competitive overhang for Alexion," Huang said.

  • "We view this settlement as a deck-clearing event that could also make the Alexion story cleaner for an acquirer," said Piper Sandler analyst Christopher Raymond.

  • Earlier in May, activist investor Elliott Management publicly pressured Alexion to sell itself. Meanwhile, Sanofi is selling a portion of its shares in Regeneron Pharmaceuticals.

  • Raymond added that "given Elliott Management's involvement and this week's news that Sanofi is monetizing its Regeneron stake, we think this possibility [of Alexion being a takeover target] has to be front of mind."

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