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Pro Research: Wall Street delves into Alnylam Pharmaceuticals

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Published Dec 04, 2023 11:23AM ET Updated Dec 15, 2023 02:09PM ET

Pro Research: Wall Street delves into Alnylam Pharmaceuticals © Reuters

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In the biopharmaceutical landscape, Alnylam Pharmaceuticals continues to be a company of interest, with its dedication to RNA interference (RNAi) therapeutics for the treatment of serious diseases. The company’s stock, traded as NASDAQ:ALNY, remains a focal point for analysts, who have provided updated insights into its prospects, performance, and potential, reflecting a positive industry view and confidence in its strategic direction.

Product Segments and Clinical Trials

Alnylam showcases a dynamic portfolio that includes FDA/EMA-approved drugs for rare diseases and several promising candidates in development. The company has recently disclosed initial data for ALN-TTRsc04 targeting ATTR amyloidosis, which shows promise for supporting annual dosing, and ALN-KHK for Type 2 Diabetes, indicating progress in their pipeline. Zilebesiran, aimed at treating hypertension, continues to generate buzz, particularly with the Phase II KARDIA-2 data expected in the first half of 2024, which will explore its efficacy combined with standard hypertension medication. The KARDIA-3 study, targeting higher-risk patients, is on track for mid-2024.

The HELIOS-B Phase 3 trial for AMVUTTRA in ATTR amyloidosis with cardiomyopathy is anticipated to report top-line data in early 2024. Alnylam’s strategic partnership with Roche, including a substantial upfront payment and potential milestones, reinforces the confidence in Alnylam’s technology and pipeline. Furthermore, management has expressed high confidence in the successful outcome of the HELIOS-B study and plans for a mid-2024 sNDA submission assuming success.

Financial Health

Alnylam’s financial standing is solid, with a pro forma cash position estimated at $2.51 billion, enabling the company to fund its operations and research initiatives. However, the company faces a significant debt load of $1.02 billion, which investors should monitor carefully. The stock price stands at USD 180.52 as of December 13, 2023, with a market cap of USD 22.654 billion. Financial estimates for the coming years show an expected improvement in earnings per share (EPS), moving from a loss in 2022 to positive earnings in 2024. Guidance numbers provided by BMO include EPS estimates for 2022A at $(6.50), improving to $(1.67) in 2023E and further to $0.47 in 2024E. Revenue is projected to increase from $1,037 million in 2022A to $1,773 million in 2023E but then slightly decrease to $1,628 million in 2024E.

Competitive Landscape and Market Trends

The biopharmaceutical sector remains intensely competitive, with numerous companies striving for market share in the treatment of similar diseases. Alnylam’s focus on RNAi therapeutics differentiates it from its competitors, offering a novel approach to addressing serious diseases. The company’s ability to forge partnership deals, such as the one with Roche, provides financial support and validates its technology. Moreover, Alnylam’s expansion into obesity with a development candidate targeting the INHBE gene and further pipeline growth in hematology, type 2 diabetes, and liver diseases could drive future revenue growth.

Regulatory Environment and Risks

The regulatory environment continues to pose risks for Alnylam, as with any pharmaceutical company. Clinical trials and approval processes are unpredictable, and setbacks could significantly affect the company’s outlook. Despite the recent Complete Response Letter (CRL) for Onpattro in ATTR-CM, the company remains optimistic about its HELIOS-B trial results and the progression of SubQ ALN-TTRsc04 into phase 3 trials next year, potentially offering a competitive advantage with a once-yearly subcutaneous regimen for ATTR-CM.

Management and Strategy

Alnylam’s management has showcased strategic foresight by securing valuable partnerships and sustaining a pipeline with near-term catalysts. The company’s recent R&D day provided further insights into its extra-hepatic RNAi programs, affirming timelines for key projects and unveiling new genetically validated targets, which underscores its commitment to innovation and expanding its therapeutic portfolio. Additionally, advances in conjugate-based extrahepatic delivery and ongoing innovation in vector-based hepatic delivery with the reLNP platform, enabling expansion into oncology with ALN-BCAT targeting HCC, demonstrate the company’s strategic positioning in multiple therapeutic areas.

Analyst Targets

– Barclays Capital Inc.: Overweight rating with a price target of USD 236.00 (as of December 14, 2023).

– BMO Capital Markets Corp.: Outperform rating with a price target of $234.00 (as of December 14, 2023).

– RBC Capital Markets: Outperform rating with a price target of $235.00 (as of October 11, 2023).

– Piper Sandler: Overweight rating with a price target of $210.00 (as of November 30, 2023).

– H.C. Wainwright & Co: Buy rating with a price target of $395.00 (as of November 6, 2023).

– Cantor Fitzgerald: Neutral rating with a price target of $165.00 (as of December 14, 2023).

Bear Case

Is Alnylam Pharmaceuticals facing significant regulatory risks?

The regulatory landscape for Alnylam presents a challenging environment, with the recent CRL for Onpattro in ATTR-CM highlighting the unpredictability of the approval process. Despite a solid safety profile and a favorable Advisory Committee vote, such hurdles introduce uncertainty, potentially impacting future product approvals and the company’s near-term prospects. Additional risks could include failure or delays in clinical trials, regulatory setbacks, or lower than expected market penetration.

What are the implications of the competitive landscape on Alnylam’s growth?

Alnylam operates in a highly competitive sector where numerous players are developing treatments for similar conditions. While the competition includes other RNAi therapeutics and conventional treatments, Alnylam’s market share and pricing power may face challenges. The company’s strategic adaptability will be tested as it progresses towards commercializing its products, and the current stock price, which exceeds Cantor Fitzgerald’s price target, suggests limited upside potential based on their assessment.

Bull Case

Can upcoming clinical trials catalyze growth for Alnylam Pharmaceuticals?

The company’s pipeline is teeming with potential, with multiple Investigational New Drug (IND) applications planned by the end of 2025, indicating future growth and diversification of revenue sources. The positive reaffirmation of key clinical trial timelines at the recent R&D day provides clarity and confidence in the company’s strategic direction, and positive data from trials like HELIOS-B could serve as significant catalysts, potentially driving stock performance and reinforcing market position. Expectations for Amvuttra to be used as a monotherapy and potential patient switch from Tafamidis due to various advantages including cost, dosing frequency, and response rates are particularly promising.

How does Alnylam’s partnership with Roche validate its technology?

Alnylam’s strategic partnership with Roche, which includes a considerable upfront payment and potential milestones, is a robust endorsement of its RNAi technology. This collaboration not only offers financial support but also bolsters the credibility of Alnylam’s R&D efforts. Such partnerships are critical in bringing innovative treatments to market and significantly enhance investor confidence in the company’s long-term potential.

SWOT Analysis


– Robust RNAi therapeutic pipeline with several FDA/EMA-approved drugs.

– Strategic partnerships with industry leaders like Roche.

– Strong cash position to fund research and development initiatives.


– Significant debt load of $1.02 billion.

– Regulatory risks, as evidenced by the recent CRL for Onpattro.

– Competition in the biopharmaceutical sector for similar treatments.


– Over nine proprietary IND applications expected by the end of 2025, targeting liver indications, CNS conditions, and other tissues.

– Potential market expansion with successful trial outcomes and pipeline progression.


– Unpredictable regulatory approval process.

– Intense competition and pricing pressures in the biopharmaceutical industry.

The timeframe used for this analysis spans from September to December 2023.

InvestingPro Insights

Alnylam Pharmaceuticals (NASDAQ:ALNY) has been a beacon for investors looking for growth in the biopharmaceutical sector. With a market cap of $23.27 billion, the company has demonstrated a remarkable revenue growth of 79.37% over the last twelve months as of Q1 2023. This acceleration in revenue is a testament to Alnylam’s success in expanding its portfolio of RNAi therapeutics and securing regulatory approvals for its drugs.

Investors should note that while analysts are optimistic about Alnylam’s future, the company is not expected to be profitable this year. This is reflected in the negative P/E ratio of -45.01, which suggests that the market is pricing in the company’s growth potential despite the current lack of profits. This aligns with the sentiments expressed in the article, emphasizing the company’s strategic direction and the confidence analysts have in its potential.

However, it’s important to highlight that the stock’s recent performance has been strong, with a significant return over the last week of 9.67%. This could be indicative of the market’s favorable reaction to Alnylam’s latest developments and future prospects. Given the company’s robust pipeline and strategic partnerships, such as the one with Roche, Alnylam continues to be an intriguing option for investors.

For those seeking more in-depth analysis and additional insights, there are 11 more InvestingPro Tips available exclusively for subscribers. These tips provide a more granular look at Alnylam’s financial health, market position, and potential risks and rewards. Subscribers can access these tips by visiting InvestingPro. Moreover, with the special Cyber Monday sale, new subscribers can enjoy a discount of up to 60% on an InvestingPro subscription, and using the coupon code research23, they can receive an additional 10% off a 2-year InvestingPro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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