Back to top

Image: Bigstock

Alnylam (ALNY) Q1 Loss Wider than Expected, Revenues Up Y/Y

Read MoreHide Full Article

Alnylam Pharmaceuticals, Inc. (ALNY - Free Report) reported a loss of $1.25 per share in the first quarter of 2017, wider than the Zacks Consensus Estimate of a loss of $1.22 and the year-ago loss of $1.21.

Quarterly revenues rose 160.3% to $19.0 million. However, revenues missed the Zacks Consensus Estimate of $28.0 million. Revenues in the quarter included $12.3 million earned under the company's collaboration agreement with Sanofi’s (SNY - Free Report) subsidiary, Genzyme, as well as $6.4 million from the company’s alliance with The Medicines Company , and $0.3 million from other sources.

Alnylam’s share price has increased 47% year to date, while the Zacks classified Medical - Biomedical and Genetics industry gained 3.9%.

Quarter in Detail

Research and development (R&D) expenses fell 9.7% from the year-ago period to $87 million primarily due to higher expenses related to lower stock-based compensation expenses and external services expenses related to pre-clinical activities.

Likewise, general and administrative (G&A) expenses increased 82.5% to $38.5 million. The increase was primarily due to higher compensation as headcount was increased to support growth. Further, expenses also increased for the potential launch of patisiran during the quarter.

Guidance

Alnylam expects its cash, cash equivalents and marketable securities (including restricted investments) to be greater than $700 million at the end of the year.

Pipeline

Alnylam has been making progress as far as the development of its candidates is concerned. The company reported positive clinical results with fitusiran for haemophilia in Feb 2017. In Mar 2017, the European Medicines Agency (EMA) granted givosiran (ALN-AS1) PRIME Designation for accelerated assessment for the treatment of porphyria based on positive data from a phase I study.

Additionally, the company along with The Medicines Company also reported positive final clinical data from Orion-1 phase II study on inclisiran for hypercholesterolemia. Inclisiran significantly reduced LDL-C and sustained over time. Subsequent to the quarter, in Apr 2017, The Medicines Company announced an agreement with the FDA on plans for phase III study on inclisiran. The primary endpoint will be change in LDL-C from baseline.

The company expects 2017 to be a pivotal year with its first phase III data read out – APOLLO for its late-stage pipeline candidate patisiran by mid-2017 and expects to submit applications for regulatory approvals in the U.S. and Europe at year-end.

Our Take

Alnylam’s first-quarter results were disappointing with the company reporting a wider-than-expected loss and revenues missing estimates. With several pipeline-related events lined up for the upcoming quarters, we expect investor focus to remain on further updates by the company.

Alnylam Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

Alnylam Pharmaceuticals, Inc. Price, Consensus and EPS Surprise | Alnylam Pharmaceuticals, Inc. Quote

Zacks Rank & Key Picks

Alnylam carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is Enzo Biochem, Inc. (ENZ - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Enz Biochem’s loss estimates for 2017 narrowed 25% over the past 60 days. The company recorded a positive earnings surprise in the past four quarters, with the average being 39.17%. Its share price is up 27.1% so far this year.

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.

One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Sanofi (SNY) - free report >>

Alnylam Pharmaceuticals, Inc. (ALNY) - free report >>

Enzo Biochem, Inc. (ENZ) - free report >>

Published in