Alexion Pharmaceuticals (ALXN), a manufacturer of life-transforming therapeutic products, has recorded a 73.64 percent surge in profit for the quarter ended Jun. 30, 2014, on the back of strong sales growth and expansion margins.
The company earned $166.50 million or $0.83 a share in the second-quarter compared with $95.88 million or $0.48 a share a year ago. Adjusted earnings per share came in at $0.73, when analysts expected $1.07.
Revenue during the second-quarter surged 38.48 percent to $512.50 million from $370.09 million in the last year period.
Gross margin expanded by 291 basis points over the last year period to 92.27 percent. Total expenses as a percentage of revenues decreased to 57.30 percent from 62.80 percent in the same period last year. That has resulted in improvement of 550 basis points in operating margins to 42.70 percent.
The company posted operating income of $218.85 million, compared with operating income of $137.69 million in the previous year period.
"In the second quarter of 2014, we served an increasing number of new patients with PNH and aHUS worldwide while simultaneously reaching several significant milestones across our pipeline, including the filing of our MAA for asfotase alfa for HPP in Europe, which has been accepted and granted accelerated assessment," said Leonard Bell, M.D., CEO of Alexion.
Cash Flow
Alexion Pharmaceuticals has generated cash of $75.10 million from operating activities during the first half, down 47.92 percent or $69.10 million when compared with the last year period. The company has generated 6.96 cents of operating cash flow in every sales dollar for the first half, down from 20.34 cents in the same period last year.
The company has spent $90.12 million cash to meet investing activities during the first half, as against cash outgo of $197.54 million in the last year period. It has made net capital expenditure of $61.19 million during the first half, which was higher by 336.69 percent or $47.18 million, from a year ago.
The company's free cash flow accounted for 18.52 percent of operating cash flow for the first half, compared with 90.28 percent in the last year period.
The company has generated cash of $96.63 million from financing activities during the first half, up $93.97 million, when compared with the last year period. It has made net repayment of $31.50 million debt during the first half. It has spent net of $126.33 million on repurchase of common stocks.
As on Jun. 30, 2014, the company's cash balance stood at $612.04 million, down 34.64 percent or $324.42 million from Jun. 30, 2013.
Working Capital
Alexion Pharmaceuticals has witnessed an increase in the working capital over the last one year. The company's working capital stood at $1923.60 million as at Jun. 30, 2014, up $547.95 million or 39.83 percent from $1375.66 million on Jun. 30, 2013. It registered an increase in current ratio to 5.61 as at Jun. 30, 2014 from 5.54 on Jun. 30, 2013.
Debt Position
Alexion Pharmaceuticals has witnessed a decline in the total debt over the last one year. As on Jun. 30, 2014, total debt stood at $81.50 million, down 43.35 percent or $62.35 million, from Jun. 30, 2013.
The company's total debt was 2.29 percent of total assets as on Jun. 30, 2014, compared with 5.11 percent on Jun. 30, 2013.
Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has improved to 306.08 from 130.39 in the same period last year.
Shares of the company went down by 44 cents or 0.26 percent to close at $167.04 on Friday.
