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Monday - RBC Capital Markets has maintained their Outperform rating and a $330.00 price target on Alnylam Pharmaceuticals (NASDAQ:ALNY), following the recent FDA approval of Amvuttra. The company’s stock has shown remarkable strength, gaining nearly 12% in the past week and trading near its 52-week high of $304.39. A key opinion leader (KOL) in amyloidosis, who runs one of the largest centers for the disease, expressed confidence in the drug’s rapid market uptake, highlighting its potential to become the dominant treatment in the second-line setting.According to InvestingPro, Alnylam demonstrates strong financial health with a current ratio of 2.78, indicating solid liquidity to support its growth initiatives.
The KOL’s assessment came after the FDA’s approval of Amvuttra last week, which was widely expected due to the strong results from the HELIOS-B study. The drug’s label, which includes data on reducing urgent heart failure visits, was seen as a positive differentiator from competitors like BridgeBio Pharma (NASDAQ:BBIO) and Pfizer (NYSE:PFE). The KOL anticipates that 80-90% of his patients will ultimately use Amvuttra, preferring to switch to a new class of drugs rather than stay within the same class. This potential market dominance could further boost Alnylam’s already impressive revenue growth of 23% over the last twelve months.
In the first-line setting, the market division is less clear, with various factors such as payer decisions and patient preference for oral versus injectable treatments influencing outcomes. However, the KOL believes Alnylam could capture at least 40% of all patients. Despite the similarity between BridgeBio’s molecule and Pfizer’s, current payer dynamics present an opportunity for Alnylam, as some patients are being forced to switch between Vyndamax and Vyndaqel.
The KOL also noted a significant increase in the number of patients with transthyretin-mediated cardiomyopathy (TTR-CM) in his practice, with 3-5 new referrals each week. This trend could accelerate with the entry of three competing treatments in the market. RBC Capital’s analysts left the meeting with the KOL feeling more positive about Alnylam’s prospects.
Alnylam is poised for a strong market presence in a sector valued at over $6 billion, where 90% of patients are still not on therapy. The company has also guided towards profitability this year, supported by its robust gross profit margin of 86% and analysts’ expectations of positive earnings in 2025. The current market, favoring risk-averse and high-quality commercial names, could be beneficial for Alnylam’s stock performance, which has already delivered a remarkable 93% return over the past year.For deeper insights into Alnylam’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 12 additional ProTips and detailed valuation metrics in the Pro Research Report.
In other recent news, Alnylam Pharmaceuticals has received significant attention following the U.S. Food and Drug Administration’s (FDA) approval of its drug Amvuttra (vutrisiran) for the treatment of transthyretin amyloid cardiomyopathy (ATTR-CM). This approval has been highlighted by various analyst firms, with H.C. Wainwright maintaining a Buy rating and a $500 price target, emphasizing the drug’s potential to become a leading therapy. Meanwhile, JPMorgan upgraded Alnylam’s stock to Overweight, raising the price target to $328, citing a positive outlook on the company’s prospects in the transthyretin amyloidosis market. Stifel also upheld a Buy rating with a $300 target, noting the drug’s favorable label and pricing strategy.
Scotiabank (TSX:BNS) increased its price target to $338, maintaining a Sector Outperform rating, and pointed out Amvuttra’s unique position as the first transthyretin silencer available for this condition. Cantor Fitzgerald, however, kept a Neutral rating with a $250 target, acknowledging the approval’s significance but expressing caution over the statistical data. The FDA’s decision to approve the drug ahead of the anticipated PDUFA date has been seen as a regulatory milestone. Analysts have noted that Amvuttra’s label includes benefits such as reduced cardiovascular mortality and hospitalizations, which could differentiate it from competitors. These developments mark a pivotal moment for Alnylam Pharmaceuticals as it continues to advance its treatments in the ATTR-CM market.
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