On Tuesday, Canaccord Genuity maintained a Buy rating on shares of Alnylam Pharmaceuticals (NASDAQ:ALNY), with a price target of $384.00. The firm's analyst commented on recent developments in the market for treatments of ATTR-CM, a rare heart condition.
Last Friday, BridgeBio Pharma (NASDAQ:BBIO) received FDA approval for Attruby (acoramidis), a new entrant in the market, which has been priced at $244,500 per year. This price is lower than Pfizer 's (NYSE:NYSE:PFE) Vyndaquel/Vyndamax (tafamidis), which costs $268,000 annually.
BridgeBio Pharma's pricing strategy includes support programs for patients new to the treatment or those switching from other medications. Canaccord Genuity's analysis suggests that while Attruby is expected to compete with tafamidis, it is not seen as a direct competitor to Alnylam's Amvuttra. The approval and competitive pricing of Attruby are anticipated to lead to a quicker uptake than originally projected, although this is not expected to affect the firm's outlook on Amvuttra.
The analyst also noted that the ATTR-CM market has the capacity to accommodate multiple treatments. The focus from a valuation perspective, according to Canaccord Genuity, should be on the rates of diagnosis and treatment in the outer years rather than the immediate dynamics of the product launch. This long-term view underpins the firm's continued confidence in Alnylam Pharmaceuticals and its maintained Buy rating.
Canaccord Genuity predicts a potential price adjustment for Amvuttra to align with the branded tafamidis price, as part of the competitive landscape in the ATTR-CM treatment market. The analyst's reiteration of the Buy rating reflects a positive outlook on Alnylam's position within this market, despite the new competition.
In other recent news, Alnylam Pharmaceuticals has seen significant developments in its operations and product pipeline. The FDA recently approved Alnylam's drug, Attruby, with BMO Capital maintaining an Outperform rating for the company. The approval of Attruby is seen as a favorable indicator for Alnylam's other drugs, including Amvuttra, which is expected to be accepted without the need for an Advisory Committee meeting.
Alnylam also reported a substantial 34% year-over-year increase in global net product revenue, totaling $420 million, primarily driven by its transthyretin amyloidosis treatments. The FDA is currently reviewing Alnylam's supplemental New Drug Application for vutrisiran, a potential treatment for ATTR amyloidosis with cardiomyopathy.
Multiple analyst firms have varied opinions on Alnylam. While H.C. Wainwright and TD Cowen maintained their Buy ratings, expressing confidence in the company's drug development trajectory, Wolfe Research downgraded Alnylam's stock from Peer Perform to Underperform due to long-term value concerns.
Lastly, Alnylam has ceased the ALN-KHK program for type 2 diabetes but remains open to business development opportunities.
InvestingPro Insights
To complement Canaccord Genuity's positive outlook on Alnylam Pharmaceuticals (NASDAQ:ALNY), recent data from InvestingPro provides additional context for investors. Despite the competitive pressures in the ATTR-CM market, ALNY has demonstrated strong financial performance. The company's revenue grew by 21.54% over the last twelve months, reaching $2.09 billion. This growth aligns with the analyst's confidence in Alnylam's market position.
InvestingPro Tips highlight that ALNY has seen a high return over the last year, with a 54.05% price total return. This performance supports Canaccord Genuity's bullish stance. Additionally, the company's liquid assets exceed short-term obligations, suggesting financial stability as it navigates the evolving treatment landscape.
It's worth noting that while ALNY shows promise, it operates with some financial challenges. The company is not currently profitable, with a negative P/E ratio of -97.81. However, this is not uncommon for biotech companies investing heavily in research and development.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for ALNY, providing a deeper understanding of the company's financial health and market position.
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