Alnylam's (ALNY) Q3 Earnings, Revenues Miss Estimates

Alnylam Pharmaceuticals, Inc. ALNY incurred a loss of $1.34 per share in the third quarter of 2017, wider than the Zacks Consensus Estimate of a loss of $1.23. The figure was also wider than the year-ago loss of $1.21.

Quarterly revenues improved 25.2% to 17.1 million. However, the same missed the Zacks Consensus Estimate of $37 million. The top line in the quarter included $14.6 million earned under the company's collaboration agreement with Sanofi’s SNY subsidiary, Genzyme as well as $2.3 million from the company’s alliance with The Medicines Company MDCO and $0.2 million from other sources.

So far this year, Alnylam’s stock has increased 245.8% compared with the industry’s growth of  3.3%.

Quarter in Detail

Research and development expenses declined 2.7% from the year-ago period to $95.3 million. However, general and administrative expenses more than doubled to $47.6 million.

Guidance

Alnylam remains on track to end 2017 with greater than $1 billion in cash, cash equivalents and fixed income marketable securities including $150 million in restricted investments.

Pipeline Updates

Alnylam reported positive phase III study results from the APOLLO study evaluating patisiran an investigational RNAi therapeutic for the treatment of patients with hereditary ATTR (hATTR) amyloidosis with polyneuropathy. Based on these results, the company plans to submit a new drug application (NDA) for patisiran by the end of 2017 and a Marketing Authorization Application (MAA) thereafter. Notably, it expects to receive approval by mid 2018.

Alnylam initiated the ENVISION phase III program for givosiran in acute hepatic porphyrias as well.

Moreover, the company and its partner, The Medicines Company, commenced the ORION-11 phase III study of inclisiran, an investigational RNAi therapeutic targeting PCSK9 in development for the treatment of hypercholesterolemia, in patients with atherosclerotic cardiovascular disease (ASCVD).

Again, the company initiated the ATLAS phase III study to evaluate the safety and efficacy of fitusiran in patients with hemophilia A and B with or without inhibitors.

Meanwhile, Alnylam suspended dosing in all ongoing studies of fitusiran temporarily. This was due to a fatal thrombotic serious adverse event that occurred in a patient with hemophilia A without inhibitors who was receiving fitusiran in the phase II OLE study. It plans to resume dosing in all studies as soon as possible, potentially by the end of 2017.

Our Take

Alnylam’s reported wider-than-expected loss and sales miss in the third quarter. With several pipeline-related events lined up for the upcoming quarters, we expect investor’s focus to remain on further updates by the company.

Zacks Rank & Key Pick

Alnylam carries a Zacks Rank #3 (Hold). A better-ranked health care stock in the same space is Ligand Pharmaceuticals Inc. LGND sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ligand’s earnings per share estimates have moved up $3.68 to $3.70 for 2018 over the last 30 days. The company pulled off positive earnings surprises in two of the trailing four quarters, with an average beat of 6.19%. The share price of the company has increased 44% year to date.

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