Citi Analyst Upgrades Alexion Shares To 'Buy'

NEW YORK (AP) — A Citi analyst upgraded shares of Alexion Pharmaceuticals Inc. Tuesday, citing the sales potential for the company's only marketed drug, Soliris, in treating multiple conditions.

Citi Investment Research analyst Dr. Lucy Lu to upgraded shares to "Buy" from "Hold" and boosted the price target to $55 from $45. She said several new indications could give the company additional sales opportunities for Soliris. That drug was launched in the U.S. and some European Union countries in 2007. It treats a rare chronic disease called paroxysmal nocturnal hemoglobinuria, which causes a breakdown of red blood cells and leads to anemia.

She said potential future uses of Soliris include atypical hemolytic uremic syndrome, which is a rare condition that can cause kidney failure in children. Other uses include acute humoral rejection, which is an organ rejection condition, in kidney transplant patients.

"Because of the high cost of Soliris therapy, we believe that these two indications will become meaningful revenue sources for Alexion, even with small number of patients," she said, in a note to investors.

Shares of the Cheshire, Conn.-based company rose 32 cents to $45.45 in midday trading.