nasdaq alxn nasdaq 100 component s & p 500 component industry pharmaceutical founded 1992 founder leonard bell headquarters new haven connecticut u.s. key people leonard bell chairman david l. hallal ceo products soliris revenue us 1151.346 million 2013 37 % 1 operating income us 528.010 mil 2013 31 % 1 net income us 252.895 mil 2013 1 total assets us 3.317696 bil 2013 27 % 1 total equity us 2.382079 bil 2013 21 % 1 number of employees 1774 december 2013 1 website www.alxn.com alexion pharmaceuticals inc. is an american pharmaceutical company best known for its development of soliris a drug used to treat the rare disorders atypical hemolytic uremic syndrome ahus and paroxysmal nocturnal hemoglobinuria pnh . 2 3 the company is also involved in immune system research related to autoimmune diseases . it employs about 2 400 people worldwide . 4 on february 29 2016 the company held the dedication ceremony for its brand new headquarters in new haven ct not far from the company s starting point in the same city . 5 contents 1 history 1.1 acquisitions 1.2 acquisition history 2 products 2.1 specialty drugs 2.1.1 soliris 2.2 strensiq 2.3 kanuma 3 financials 4 references 5 external links history edit alexion pharmaceuticals was founded in 1992 at science park in new haven connecticut by leonard bell . 6 bell would serve as the company s ceo until 2015 . 7 in 2000 alexion moved its headquarters from new haven to cheshire connecticut . alexion moved back to new haven following the completion of new haven s downtown crossing project in december 2015 alexion s new headquarters are located at 100 college street since 2006 alexion has been a supporter of healthcare research and quality studies at duke university for aspirin and clopidogrel trade name plavix . 6 alexion received us food and drug administration fda approval for soliris in 2007 . it was initially approved to treat paroxysmal nocturnal hemoglobinuria a rare blood disorder . 4 in 2010 there was an outbreak of hemolytic uremic syndrome caused by enterohaemorrhagic escherichia coli ehec in germany . soliris was considered as a treatment option due to its effectiveness in treating atypical hemolytic uremic syndrome an illness similar to the one caused by the ehec infection . as a result alexion s german subsidiary provided an unspecified number of soliris doses at no charge to physicians who requested it . 8 on april 4 2011 alexion was added to the nasdaq 100 a group composed of the 100 largest non financial stocks traded on the nasdaq ; with a market value of usd 8.5 billion it replaced genzyme corporation . 9 on april 1 2015 bell was replaced as ceo by david hallal . 7 in 2016 the company became a member of the pharmaceutical research and manufacturers of america phrma . 10 acquisitions edit in 2000 alexion purchased proliferon inc. a san diego california based development stage biopharmaceutical firm for us 41 million in alexion stock . alexion ceo leonard bell cited proliferon s ability to produce an unlimited amount of antibodies as the reason for the acquisition . at the time proliferon s annual revenue was about 2.5 million and its assets were valued at 2.1 million . 11 12 the company has since been renamed alexion antibody technologies inc. on december 29 2011 alexion acquired montreal based enobia pharma corp for 610 million upfront and up to another 470 million later contingent on company sales and regulatory goals . the 610 million includes 300 million in bank debt . enobia is the developer of asfotase alpha a drug used to treat the genetic disorder hypophosphatasia . 13 in may 2015 alexion announced plans to purchase the lexington firm synageva biopharma a maker of rare disease treatments run by ex genzyme executive sanj patel who negotiated an 8.4 billion stock and cash deal . 14 in the deal each share of synageva which is traded on nasdaq will be exchanged for 115 in cash and 0.6581 shares of alexion stock . the price represented more than a 135 % premium over synageva s market cap at the time . 7 it also represents a valuation of about ten times projected peak sales double what is typical for the biotech industry . 15 analysis by the wall street journal suggested the large premium was due to the perceived value of rare disease treatments which usually are very expensive when compared to treatments for more common diseases . 7 alexion is thus seeking a stronger position in the lucrative rare disease market and is willing to pay a premium to obtain that position . the rare disease market is seen as desirable because insurers have minimal motive to deny claims due to small population sizes of patients and are unable to negotiate better drug prices due to lack of competition . 16 alexion said it expects to save 150 million in costs by the end of 2017 by combining with synageva . it does not expect revenue and earnings per share to increase until 2018 . the deal would give alexion a total of eight drugs in clinical trials and 30 others in preclinical trials . synageva s main drug kanuma could receive approval in the united states and europe as early as the third quarter of 2015 . 7 the boards of both companies have approved the merger which is expected to complete in mid 2015 . 16 alexion shares fell 8.9 % the day after the deal was announced . 7 acquisition history edit the following is an illustration of the company s mergers acquisitions spin offs and historical predecessors alexion pharmaceuticals alexion pharmaceuticals founded 1992 proliferon inc acq 2000 restructured into alexion antibody technologies inc enobia pharma corp acq 2011 synageva biopharma acq 2015 products edit specialty drugs edit main article specialty drugs alexion has employed a strategy of developing drugs to combat rare diseases . since the targeted user base is small for such drugs clinical drugs tend to be quicker and cheaper than those for mass market drugs . additionally big pharmaceutical companies have tended to ignore these markets creating a niche with minimal competition for alexion . insurance companies have generally been willing to pay high prices for such drugs ; since few of their customers need the drugs a high price does not significantly impact the insurance companies outlays . 15 the success of specialty drugs for rare diseases comes at a time when the traditional drug business of selling medicines to the masses is in decline ... specialty drugs have gotten more expensive than anyone imagined . 17 soliris edit main article eculizumab alexion s first drug soliris used to treat the rare disorders atypical hemolytic uremic syndrome ahus and paroxysmal nocturnal hemoglobinuria pnh . 3 it has been approved for use in canada the european union japan and the united states ; however availability in canada is limited . in canada access to the drug is mostly through private clinics ; groups such as the canadian association of pnh patients are lobbying to change that . 18 the drug costs roughly 450 000 a year and is considered the world s most expensive drug . 4 7 the price of the drug is so high that very few individuals can pay the price . as a result alexion hires public relations firms to help families institute campaigns to pressure their governments to pay for the drug . alexion is putting pressure on to governments to receive their payments from the public purse . the prices charged have a very high margin above the cost price . in addition much of the research for the development of soliris originates from publicly funded universities . there is an ethical question as to the pricing of the drug and the ethics of the drug manufacturer . alexion is well on the way to developing a second very high price and high margined drug . 19 on september 23 2011 the fda officially approved the use of soliris as a treatment for atypical hemolytic uremic syndrome in both adults and children . more than half of people with ahus end up dying of it as a result of damage to vital organs organ failure usually involving the kidneys caused by uncontrolled complement activation . the fda s decision to grant approval received a positive response from the medical community with the director of pediatric nephrology at atlanta s children s hospital calling it the most important advance that has been made for patients and families with this disease . 20 by 2010 soliris was considered to be the most expensive drug in the world . 17 it costs 340 200 approximately 430 000 per year for ongoing treatment in the uk 21 22 and 500 000 a year in canada . 21 22 23 and us 409 500 a year in the united states 2010 . 17 in the case of the rarest diseases that afflict fewer than 10 000 people biotech companies who own the only approved drugs to treat those diseases can charge pretty much whatever they want . before testing soliris for pnh alexion tested the drug for rheumatoid arthritis which afflicts 1 million americans . the trials failed . but if it had worked for arthritis alexion would likely have had to charge a much lower price for this use as it would have to compete against drugs that cost a mere 20 000 . alexion started selling soliris in 2008 making 295 million in 2007 with its stock price rising to 130 % in 2010 . 23 in april and may 2013 a controversy arose in belgium when the media revealed that the government had refused to pay for a seven year old boy s treatment because soliris was too expensive . the boy s medicine cost 9 000 euros every two weeks . 24 on may 4 2013 de standaard reported that a press relations pr agency working for alexion had helped the boy s parents communicate their story to the press . 25 it was also reported that the parents had believed their benefactor was a dutch organization for patients and that the pr agency acted with permission from alexion . 26 27 several politicians stated that the company was attempting to blackmail the government charges which alexion denied . 28 by may 7 2013 an agreement had been reached to reimburse the medicine . 29 30 pharma the belgian pharmaceutical industry s association opened an internal investigation into the affair for possible breach of the association s ethical standards by alexion . however on june 12 alexion received a court gag order against pharma preventing it from communicating its investigation . at the same time pharma opened a court case against alexion pharma belgium . the gag order was revoked by the end of september 2013 31 but the case was still pending in march 2015 . 30 strensiq edit in october 2015 alexion s second drug strensiq asfotase alfa was approved by the us fda . it is used to treat hypophosphatasia a rare metabolic disorder . kanuma edit kanuma which alexion acquired in its acquisition of synageva was approved in 2015 to treat lysosomal acid lipase deficiency a fatal genetic disorder that cause fatty material to build up in blood vessel walls the liver and other tissues . 7 alexion estimates that the drug could eventually have annual sales of more than 1 billion . 16 financials edit in 2013 36 % alexion s sales originated in the us down from 37 % the previous year ; 33 % came from europe down from 35 % ; japan accounted for just over 10 % . revenue was impacted by higher unit volumes for soliris up 40 % and a decreased average price related to rebates in europe . acquisition related costs fell significantly from 22 million to just 5 million . 1 r &