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Alnylam (ALNY) Q3 Loss Wider than Expected, Revenues Up
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Alnylam Pharmaceuticals, Inc. (ALNY - Free Report) reported a loss of $1.21 per share in the third quarter of 2016, wider than both the Zacks Consensus Estimate of a loss of $1.19 and the year-ago figure of 91 cents.
Quarterly revenues, on the other hand, surged 117.5% to $13.7 million, primarily driven by higher revenues earned under the company's collaboration agreement with Sanofi’s subsidiary, (SNY - Free Report) Genzyme. Revenues were also above the Zacks Consensus Estimate of $7.5 million.
Quarter in Detail
The company’s top line consisted of $7.4 million from its alliance with Genzyme, $2.7 million from the partnership with The Medicines Company , and $3.6 million from other sources.
R&D expenses shot up 42.7% from the year-ago period to $97.9 million primarily due to higher expenses related to the company’s advancement of the Genetic Medicine pipeline as well as higher compensation and related expenses, and stock-based compensation expenses resulting from a significant increase in headcount during the period related to pipeline development.
Likewise, general and administrative (G&A) expenses increased 40% to $22.4 million. The increase was primarily due to higher compensation and related expenses, and stock-based compensation expense due to an increase in headcount.
Outlook
The company remains on track to end 2016 with greater than $1 billion in cash, including $150 million in restricted investments.
In the fourth quarter of 2016, the company expects net revenue to increase on the back of an anticipated upside in collaboration revenues from Genzyme.
While R&D expenses are expected to increase slightly in the fourth quarter of 2016 on a sequentially basis as the company continues with its pipeline development activities, G&A expenses will remain relatively consistent with the third-quarter 2016 levels.
Pipeline
Alnylam has been making progress on the development of its candidates. Currently, the company is evaluating patisiran in a phase III study (APOLLO) for the treatment of hereditary transthyretin (TTR)-mediated amyloidosis (hATTR amyloidosis) with polyneuropathy (hATTR-PN), also known as familial amyloidotic polyneuropathy (FAP). The company expects to announce top-line data in mid 2017 and file a regulatory application late next year.
In its third-quarter conference call, the company also revealed that it has initiated an Expanded Access Program (EAP) on patisiran for hATTR-PN. The EAP provides an opportunity to eligible hATTR-PN patients, who are unable to participate in the APPOLLO study or have limited treatment options, to receive therapy until the product becomes commercially available.
In the reported quarter, Alnylam discontinued the phase III ENDEAVOUR study on revusiran for the treatment of hATTR- amyloidosis with cardiomyopathy (hATTR-CM), also known as familial amyloidotic cardiomyopathy (FAC). The decision followed the recommendation of a data monitoring committee that suggested that the benefit-risk profile of the candidate did not support continued dosing in patients.
Alnylam’s third-quarter results were mixed with the company reporting a wider-than-expected loss but revenues surpassing estimates. Nevertheless, the alliance with Genzyme should continue driving the company’s top line in the coming quarters. With several pipeline-related events lined up for the upcoming quarters, we expect investor focus to remain on further updates by the company.
Zacks Rank & Key Picks
Alnylam carries a Zacks Rank #2 (Buy). Infinity Pharmaceuticals, Inc. is another favorably placed stock in the healthcare sector, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Infinity’s loss estimates narrowed from $3.84 to $3.79 for 2016 but remained unchanged for 2017 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 67.62%.
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Alnylam (ALNY) Q3 Loss Wider than Expected, Revenues Up
Alnylam Pharmaceuticals, Inc. (ALNY - Free Report) reported a loss of $1.21 per share in the third quarter of 2016, wider than both the Zacks Consensus Estimate of a loss of $1.19 and the year-ago figure of 91 cents.
Quarterly revenues, on the other hand, surged 117.5% to $13.7 million, primarily driven by higher revenues earned under the company's collaboration agreement with Sanofi’s subsidiary, (SNY - Free Report) Genzyme. Revenues were also above the Zacks Consensus Estimate of $7.5 million.
Quarter in Detail
The company’s top line consisted of $7.4 million from its alliance with Genzyme, $2.7 million from the partnership with The Medicines Company , and $3.6 million from other sources.
R&D expenses shot up 42.7% from the year-ago period to $97.9 million primarily due to higher expenses related to the company’s advancement of the Genetic Medicine pipeline as well as higher compensation and related expenses, and stock-based compensation expenses resulting from a significant increase in headcount during the period related to pipeline development.
Likewise, general and administrative (G&A) expenses increased 40% to $22.4 million. The increase was primarily due to higher compensation and related expenses, and stock-based compensation expense due to an increase in headcount.
Outlook
The company remains on track to end 2016 with greater than $1 billion in cash, including $150 million in restricted investments.
In the fourth quarter of 2016, the company expects net revenue to increase on the back of an anticipated upside in collaboration revenues from Genzyme.
While R&D expenses are expected to increase slightly in the fourth quarter of 2016 on a sequentially basis as the company continues with its pipeline development activities, G&A expenses will remain relatively consistent with the third-quarter 2016 levels.
Pipeline
Alnylam has been making progress on the development of its candidates. Currently, the company is evaluating patisiran in a phase III study (APOLLO) for the treatment of hereditary transthyretin (TTR)-mediated amyloidosis (hATTR amyloidosis) with polyneuropathy (hATTR-PN), also known as familial amyloidotic polyneuropathy (FAP). The company expects to announce top-line data in mid 2017 and file a regulatory application late next year.
In its third-quarter conference call, the company also revealed that it has initiated an Expanded Access Program (EAP) on patisiran for hATTR-PN. The EAP provides an opportunity to eligible hATTR-PN patients, who are unable to participate in the APPOLLO study or have limited treatment options, to receive therapy until the product becomes commercially available.
In the reported quarter, Alnylam discontinued the phase III ENDEAVOUR study on revusiran for the treatment of hATTR- amyloidosis with cardiomyopathy (hATTR-CM), also known as familial amyloidotic cardiomyopathy (FAC). The decision followed the recommendation of a data monitoring committee that suggested that the benefit-risk profile of the candidate did not support continued dosing in patients.
ALNYLAM PHARMA Price, Consensus and EPS Surprise
ALNYLAM PHARMA Price, Consensus and EPS Surprise | ALNYLAM PHARMA Quote
Our Take
Alnylam’s third-quarter results were mixed with the company reporting a wider-than-expected loss but revenues surpassing estimates. Nevertheless, the alliance with Genzyme should continue driving the company’s top line in the coming quarters. With several pipeline-related events lined up for the upcoming quarters, we expect investor focus to remain on further updates by the company.
Zacks Rank & Key Picks
Alnylam carries a Zacks Rank #2 (Buy). Infinity Pharmaceuticals, Inc. is another favorably placed stock in the healthcare sector, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Infinity’s loss estimates narrowed from $3.84 to $3.79 for 2016 but remained unchanged for 2017 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 67.62%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>