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Alnylam (ALNY) Up 7.4% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Alnylam Pharmaceuticals (ALNY - Free Report) . Shares have added about 7.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Alnylam due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Alnylam's Q2 Earnings Miss Estimates, 2021 Guidance Up

Alnylam incurred a loss of $1.61 per share in the second quarter of 2021, wider than the Zacks Consensus Estimate of a loss of $1.57. The loss includes stock-based compensation expenses and unrealized loss on equity securities. Excluding these items, adjusted loss was $1.30 per share, narrower than the adjusted loss of $1.67 reported in the year-ago quarter.

The company recorded total revenues of $220.6 million, which beat the Zacks Consensus Estimate of $200 million. In the year-ago quarter, total revenues were $103.9 million. Net product revenues were $160.8 million, significantly up year over year, driven by the global expansion of Onpattro and Givlaari, as well as encouraging initial uptake for Oxlumo following its launch in the first quarter of 2021.

Net revenues from collaborators were $59.4 million, up from $26.4 million in the year-ago quarter, primarily due to an increase in revenues recognized in connection with the collaboration agreement with Regeneron. During the second quarter of 2021, Alnylam also recorded royalty revenues of $0.3 million, owing to the global sales of Leqvio from its partner, Novartis.

Quarter in Detail

Onpattro injection recorded sales of $113.8 million in the second quarter, up 71.1% year over year, driven by new patient demand. As of Jun 30, 2021, more than 1,725 patients have received treatment with Onpattro worldwide.

Givlaari, recorded sales of $30.6 millionin the second quarter, reflecting an increase of 23.9% sequentially.

Oxlumo injection recorded global net product revenues of about $16.3 million in the second quarter of 2021, reflecting an increase of 79.1% sequentially.

Adjusted research and development expenses (R&D) increased to $169.5 million from $139.2 million reported in the year-ago quarter. The increase was due to higher investment in late-stage pipeline programs.

Adjusted selling, general and administrative expenses (SG&A) rose to $126.3 million from $109.6 million incurred in the year-ago quarter. The increase was due to higher investments in commercial activities related to the three marketed products.

2021 Guidance

Alnylam revised its product revenue guidance for 2021 upward owing to strong business performance of the three commercialized products.

The company now expects net product revenues for Onpattro, Givlaari and Oxlumo in the range of $640-$665 million compared with the previous range of $610-$660 million.

Net revenues from collaborations and royalties are expected in the range of $150-$200 million. Adjusted R&D and SG&A expenses are anticipated in the band of $1,175-$1,275 million. All unchanged from the previous guidance.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

At this time, Alnylam has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Alnylam has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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