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On Tuesday, RBC Capital Markets reiterated their positive stance on Alnylam Pharmaceuticals (NASDAQ:ALNY), maintaining an Outperform rating and a price target of $300.00. According to InvestingPro data, analyst targets for the stock range from $200 to $400, with the company currently trading at $274.06. The stock has shown impressive momentum, delivering a 61.18% return over the past year. The firm’s confidence is partly based on the potential market access and reimbursement landscape for Amvuttra, Alnylam’s drug for treating transthyretin-mediated cardiomyopathy (TTR-CM).
RBC Capital hosted a discussion with a pharmacist from a leading national health insurance company to gain insights into the access and reimbursement prospects for TTR-CM medications. Although it is premature to comment on Alnylam’s strategy due to unknowns regarding the drug’s label and pricing, the expert anticipates that commercial insurance plans might require patients to try stabilizers before moving on to more expensive silencers if Alnylam sets a higher price point than competitors like Pfizer (NYSE:PFE) and BridgeBio Pharma (NASDAQ:BBIO).
However, the expert foresees broad access to Alnylam’s drug through Medicare, which covers approximately 75% of all patients, without the need for step edits, even if priced at a premium. Alnylam could benefit from being the sole Part B drug in this segment, as opposed to competitors that fall under Part D, offering an advantage especially to patients without access to Medigap or Medicaid.
Recent changes to the Inflation Reduction Act (IRA), which capped out-of-pocket costs for patients, have already shown to benefit drugs under Part D, like Pfizer’s last year. With Part D plans now bearing a greater share of catastrophic coverage costs, this could create an opportunity for Part B drugs such as Alnylam’s.
BridgeBio Pharma’s early experience with their TTR-CM drug, which is not yet on the expert’s formulary, shows a willingness for approval through medical exceptions, suggesting a possible parity with Pfizer’s offering, which BridgeBio has priced at a 10% discount.
While payers are not currently supportive of combination treatments, this may change once Pfizer’s drug becomes generic. RBC Capital concluded the discussion with a more optimistic view on Alnylam, highlighting the significant untapped market potential, guidance towards profitability within the year, and a robust drug development platform that has successfully brought five drugs to market in four years. The company’s financial health is rated as GOOD by InvestingPro, with a strong gross profit margin of 85.37% and revenue growth of 21.54% in the last twelve months. With Alnylam’s next earnings report due on February 13, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, which provide expert analysis on over 1,400 US stocks, including ALNY.
In other recent news, Alnylam Pharmaceuticals has been making significant strides in the financial and pharmaceutical sectors. Goldman Sachs added Alnylam to its US Conviction List, signifying the firm’s belief in Alnylam’s potential to outperform the market. This addition comes as part of Goldman Sachs’ routine monthly review process.
At the same time, H.C. Wainwright maintained a Buy rating on Alnylam, following the company’s pre-announcement of its fourth quarter and full-year 2024 financial results. Notably, Alnylam reported expected net product revenues of $452 million for Q4 of 2024, surpassing both H.C. Wainwright’s estimate of $440 million and the consensus of $435 million.
Stifel analysts also maintained a positive outlook on Alnylam, reiterating their Buy rating. Alnylam’s focus on RNA interference (RNAi) therapeutics has positioned it as a leader in this cutting-edge area of medicine.
Canaccord Genuity retained its Buy rating on Alnylam, despite the recent market developments in treatments for ATTR-CM, a rare heart condition. The firm’s analysis suggests that the ATTR-CM market can accommodate multiple treatments, underpinning their continued confidence in Alnylam.
These are among the recent developments highlighting Alnylam’s strong financial performance and innovative product pipeline.
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