Alexion settlement could 'clear the deck' for acquirer, says Piper Sandler

Piper Sandler analyst Christopher Raymond keeps an Overweight rating on Alexion Pharmaceuticals (ALXN) following news of an impending settlement of Amgen's (AMGN) inter partes review challenge for three U.S. Soliris patents, according to documents posted by the Patent Trial and Appeal Board. A settlement would be a "deck-clearing event" that could also make the Alexion "story cleaner for an acquirer," Raymond tells investors in a research note. Given Elliott Management's involvement and this week's news that Sanofi (SNY) is monetizing its Regeneron (REGN) stake, "this possibility has to be front of mind," says the analyst. Raymond wonders why Alexion would settle now, three months before the PTAB's written decision was due. One possible consideration for Alexion "was to clear the deck to make the story cleaner for an acquirer," contends Raymond. The stock in premarket trading is up 7% to $114.00.