Back to top

Analyst Blog

Alnylam Pharmaceuticals Inc.’s (ALNY - Analyst Report) fourth quarter 2012 loss of $1.20 per share was narrower than the Zacks Consensus Estimate of a loss of $1.70. The loss was however wider than the year-ago loss of 33 cents per share. The wider year-over-year loss was primarily attributable to lower revenues.

In 2012, Alnylam reported a loss of $2.11 per share, wider than the year-ago loss of $1.36 per share. The company’s 2012 loss was narrower than the Zacks Consensus Estimate of a loss of $2.61. In 2012, Alnylam’s total revenue came in at $66.7 million, down 24% year over year. The Zacks Consensus Estimate of $71 million was higher than the company’s full year revenue.

Quarter in Detail

Revenues for the reported quarter fell 58.5% from the prior year to $8.5 million. Revenues were also short of the Zacks Consensus Estimate of $13 million. The sharp decline in revenues during the quarter was primarily due to the absence of collaborative revenue from its alliance with Roche Holding (RHHBY - Analyst Report), which ended in the third quarter of 2012.

Revenues in the final quarter of 2012 included $6.9 million from the company’s alliance with a couple of companies, in addition to $1.6 million of expense reimbursement and amortization revenues from Cubist Pharmaceuticals Inc. (CBST - Analyst Report), among others.

Research and development (R&D) expenses fell approximately 8.5% to $21.7 million. The reduction was primarily due to lower compensation expenses from the company’s corporate restructuring in January last year.

General and administrative (G&A) expenses in the reported quarter decreased approximately 4.7% year over year to $10.2 million. The decrease in G&A expenses was primarily attributable to lower consulting and professional services expenses. Alnylam expects G&A expenses to decline considerably in 2013.

Public Offering

Alnylam raised approximately $174 million from a public offering of shares of its common stock last month. The company intends to utilize the net proceeds from the transactions to develop its pipeline.

2013 Cash Balance Projection

Alnylam expects to end 2013 with cash, cash equivalents and total marketable securities in excess of $320 million.

The company is expecting several study results based on its ribo nucleic acid interference (RNAi) therapeutic candidates in the next two years. We expect investor focus to remain on the successful development of the pipeline.

Alnylam carries a Zacks Rank #4 (Sell). Targacept Inc. (TRGT - Snapshot Report) is an example of a better positioned pharma stock. It carries a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%