Martin Alnes

Aurore Cassin

Daria Chebatarova

Indra Pratama

Qiong Qi

STRENGTHS WEAKNESSES

1. 81,735 employees present in 108 countries

2. The 2 divisions (Pharmaceuticals and Diagnostics)

add up to their efficiency in decision-making

process by working under one command.

3. It is one of the world’s leading supplier of cancer

medicines and the number one in vitro diagnostics

company (20% share)

4. Innovation through a focus on R&D (23% of

employees) on pharmaceuticals and diagnostics.

5. Focused on value strategy (i.e. oncology products)

rather than on volume strategy.

6. By acquiring American biotech company Genentech

and Japanese company Chugai pharm, Tucson,

Ventana, exclusive marketing possibilities for the

products have arisen.

1. Some drugs that are patent to Roche are

massively produced in developed countries and

are not efficiently distributed in the third world

countries (like in the case of Tamiflu), thus

licensing is not fairly utilized.

2. Imitation of products, e.g. fake medicines

supplied under brands name affect the brand.

OPPORTUNITIES THREATS

1. Strategic agreements with other pharmaceutical

companies and organizations to develop its

research as well as significant budget setting for

R&D

2. Global penetration through mergers and

acquisitions

3. Growth in demand for quality healthcare solutions

1. Risk of unsuccessful launch of new products

2. Regulatory environment is becoming more

severe

3. Competitors, incl. Siemens, Abbott, Sanofi who

are developing too.

Strengths

•Consistent Financial Performance

•Strong Patent Base

•Lead Product Soliris

•Wide GeographicalPresence

Weaknesses

•Involvement in LegalProceedings

•Third Party Dependency For Vial Filling

Opportunities

•Pipeline Products & deals

•InorganicGrowthStrategies

•DemographicTrends

•Orphan Drugsdesignation

•EmergingMarkets

Threats

•StringentGovernmentRegulations

•Uncertainties in R&D

• (CompetitivePressures)

2007 2008 2009 2010 2011E 2012ERevenu

e

$72.041

Million

$259.09

9

Million

$386.8

Million

$540.95

7

Million

$775.3

Million

$1

Billion

Net

Income

-$92.29

Million

$33.149

Million

$295.16

6

Million*

$97.030

Million

N/A N/A

EPS -$2.54 $0.39 $3.26* $1.04 $1.30 $1.67

Revenu

e

Growth

N/A 259.65

%

49.29% 39.85% 43.32% 28.98%

EPS

Growth

N/A N/A 735.90

%

-68.1% 25% 28.46%

Net

Cash

-

$87.288

Million

-$1.511

Million

$166.30

2

Million

$357.88

7

Million

$444.47

Million

(Q3

2011)

N/A

Alexion will finance Enobia with cash and

$300 million of debt.

Even if it seems as a big warning sign on the

surface, it isn’t so. Alexion has good cash flows.

The stock trades at over 98x trailing

earnings, and 61x forward earnings.

Few companies are growing as fast as

Alexion is, and Soliris is approved for new

treatments, and new therapies are released,

growth will accerlerate from here.

Alexion bough Taligen to gain rights to

their experimental ophthalmology drug for

the treatment of Age related muscular

degeneration

Alexion bought Enobia to gain rights to

investigative treatment for HPP

(hypophosphatasia)

If Alexion or their third-party

providers, including their product

vialers, packagers and labelers, fail to compluy full with

regulations,

Government-enforced

shutdown of production facilities

Product shortages

On January 26, 2011 Novartis

Vaccines & Diagnostics Inc filed a

civil action against Alexion

Claims willful infringement by Alexion of

U.S. Patent Novartis seeks monetary

damages.

Conductadditional

studies

Failure to comply with

the laws

Administrative sanctions

Interruption of production

Approval for Soliris

Revenue Enhancement

Commercial rights on existing orphan drugs, Soliris, in40 Countries for Paroxysmal Nocturnal Hemoglobinuria(PNH) treatment & in US and EU for Atypical HemolyticUremic Syndrome (aHUS)

Potential treatments using “Soliris” for another 8 severe& ultra-rare diseases beyond PNH & aHUS

Patents on new & existing orphan drugs; Soliris,Asfotase Alfa, cPMP Replacement Therapy, ALXN1102/ALXN 1103, ALXN 1007

Cost Savings

Using Roche’s existing global distribution network.

Administrative cost reduction

Alexion’s SG&A for 2011: USD 308.18 million

Synergy will provide additional value (assuming WACC of

8.12% & growth rate of 3.00%) :

𝐔𝐒𝐃 𝟑𝟎𝟖.𝟏𝟖 𝐦𝐢𝐥𝐥𝐢𝐨𝐧

𝟖.𝟏𝟐% − 𝟑.𝟎𝟎%= 𝐔𝐒𝐃 𝟔,𝟎𝟏𝟗.𝟏𝟒 𝐦𝐢𝐥𝐥𝐢𝐨𝐧