Alnylam Pharmaceuticals (ALNY 0.86%), a leader in RNA interference (RNAi) therapeutics, published its third-quarter results on Oct. 31. The company reported impressive 34% growth in net product revenues to $420 million, primarily propelled by the ongoing success of its drug Amvuttra. However, total revenue dipped to $501 million from $751 million in the prior-year period, largely due to a steep decline in collaboration revenues. The company posted a GAAP net loss per share of $0.87, slightly better than analysts' expectations for a loss per share of $0.92.
| Metric | Q3 2024 | Q3 2024 Analyst Estimate | Q3 2023 | % Change |
|---|---|---|---|---|
| Total revenue | $501 million | N/A | $751 million | (33.2%) |
| Net product revenue | $420 million | N/A | $313 million | 34.1% |
| Collaboration revenue | $57 million | N/A | $427 million | (86.6%) |
| GAAP net earnings per share | ($0.87) | ($0.92) | $1.15 | N/A |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview
Alnylam Pharmaceuticals is a biotechnology firm specializing in RNAi therapies, which can silence the specific genes that cause some diseases. It has commercialized five RNAi medicines for various genetic and rare diseases: Onpattro, Amvuttra, Givlaari, Oxlumo, and Leqvio.
NASDAQ: ALNY
Key Data Points
Recently, Alnylam has been concentrating on advancing its RNAi platform and expanding the commercialization of its approved drugs. Strategic partnerships and a robust pipeline have been key elements supporting its growth and competitiveness in the biotechnology sector.
Quarterly Highlights
During the third quarter, Alnylam's net product revenue rose 34% year over year. Amvuttra, a treatment for the nerve damage caused by transthyretin amyloidosis led this growth, with sales soaring 74%. The transthyretin amyloidosis business segment demonstrated overall strength, though the company's other drug in that indication, Onpattro, saw a 38% decline in revenue year over year.
The quarter was also marked by a sharp drop in collaboration revenues from $427.47 million to $57.39 million. The reduction highlighted the company's shift toward reliance on product revenue growth. R&D costs rose to $270.93 million from $253.18 million in the prior-year period, and SG&A expenses rose to $220.99 million from $199.18 million, contributing to the broader underperformance.
Alnylam delivered good news from its pipeline with positive outcomes from the HELIOS-B Phase 3 study of vutrisiran. It also saw progress in its strategic focus areas, although it suspended its development of ALN-KHK for type 2 diabetes.
The company's GAAP operating loss was counterbalanced by strategic investment in development programs, illustrating a focus on long-term growth and pipeline advancements. Despite elevated expenses, these investments echo Alnylam’s pursuit of its broader strategic ambitions.
Looking Ahead
Alnylam reiterated its fiscal 2024 guidance for product revenues in the range of $1.575 billion to $1.650 billion, verging on a promising outlook for its product-focused strategy. The potential U.S. approval of Amvuttra for ATTR cardiomyopathy and the company's progress toward its broader "Alnylam P5x25" strategic goals will be pivotal in its efforts to return to profitability.
