Biotechnology Stocks With Bullish Prospects

1. Alexion Pharmaceuticals(ALXN) makes drugs for patients in severe disease states, including those with hematologic, cardiovascular and autoimmune disorders.

Quarter: Fourth-quarter profit multiplied 15 times to $237 million, or $2.59, boosted by a non-recurring tax benefit. Non-GAAP earnings per share grew 35% to 31 cents. Revenue increased 43% to $111 million. Alexion's operating margin fell from 21% to 20%. It holds $176 million of cash and $11 million of debt.

Stock: Alexion Pharmaceuticals has advanced 52% during the past 12 months, more than the Dow Jones Industrial Average, but less than the S&P 500 Index. The stock trades at a price-to-projected-earnings ratio of 22, on par with competitors' shares. It's cheap based on book value and sales.

Consensus: Of analysts covering Alexion, 13, or 68%, rate its stock "buy" and the remaining six rate it "hold." Piper Jaffray projects a $65 price target, implying a 23% upside. Thomas Weisel and Credit Suisse also expect the stock to outperform its peers. TheStreet's stock model expects it to strike $68.87.

Catalyst: Alexion's drug Soliris is the first FDA-approved treatment for chronic hemolysis, or red blood cell destruction. Hemolysis occurs as a result of PNH, a blood mutation stemming from a shortage of protective proteins. Soliris sales rocketed 49% to $389 million in 2009 and jumped 43% in the latest period.

-- Reported by Jake Lynch in Boston.

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