Is Alexion too pricey for Roche (or anyone)?

The deal is definitely not cheap, according to many analysts in the pharmaceutical industry. But at the same time Alexion is a very valuable asset. The biotech company based in Connecticut is the owner of Soliris, one of the most expensive drugs in the market, and its stock value has quadrupled since 2009. The matter is not if Roche is financially able to acquire Alexion, but whether if the Swiss company is comfortable with its valuation, which experts say can reach 61 times Ebitda. The fact that the orphan drug market is expected to continue growing by 5.4% a year until 2017, reaching out to a market value of $112 billion, and that this can fill the gap of Roche’s portfolio, fully relied on oncology products, might be just what the Swiss-based company needs to see as a validation to closing this deal. Roche and Alexion are loyal participants of the World Orphan Drug Congress USA, and shall be once more represented in the 2014 edition of the event, as the industry’s signs of validation and continuous market growth become central to the discussions taking place in Washington D.C.The deal is definitely not cheap, according to many analysts in the pharmaceutical industry. But at the same time Alexion is a very valuable asset. The biotech company based in Connecticut is the owner of Soliris, one of the most expensive drugs in the market, and its stock value has quadrupled since 2009.

The matter is not if Roche is financially able to acquire Alexion, but whether if the Swiss company is comfortable with its valuation, which experts say can reach 61 times Ebitda. The fact that the orphan drug market is expected to continue growing by 5.4% a year until 2017, reaching out to a market value of $112 billion, and that this can fill the gap of Roche's portfolio, fully relied on oncology products, might be just what the Swiss-based company needs to see as a validation to closing this deal.

Roche and Alexion are loyal participants of the World Orphan Drug Congress USA, and shall be once more represented in the 2014 edition of the event, as the industry's signs of validation and continuous market growth become central to the discussions taking place in Washington D.C.

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