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On Monday, Scotiabank (TSX:BNS) analyst Greg Harrison updated the firm’s stance on Alnylam Pharmaceuticals (NASDAQ:ALNY), increasing the price target to $342 from $338, while reiterating a Sector Outperform rating. According to InvestingPro data, the stock is currently trading at $268.46, with analyst targets ranging from $206 to $500. This adjustment follows the recent U.S. approvals of two significant treatments developed by Alnylam.
The first approval was for Amvuttra, aimed at treating transthyretin amyloid cardiomyopathy (ATTR-CM), and the second was for the newly branded Qfitlia (previously known as fitusiran), which is now approved for use in adult and pediatric patients aged 12 and older with hemophilia A or B, with or without factor VIII or IX inhibitors. The approvals mark important advancements in Alnylam’s portfolio and are expected to contribute to the company’s revenue growth, which InvestingPro reports has been strong at 23% over the last twelve months.
Harrison noted that while Qfitlia’s approval was not a major part of their bullish stance on Alnylam, it represents a key milestone. The drug is anticipated to generate substantial revenue in the United States by 2034, estimated at $578 million, which is in line with the consensus of $589 million. Qfitlia’s pricing is approximately $642,000 per year, and its sales could increase further as it gains approval in other global markets. The company’s overall financial health is rated as "GOOD" by InvestingPro’s comprehensive analysis.
Alnylam is set to receive tiered royalties ranging from 15% to 30% on global sales of Qfitlia. These royalties are projected to become a significant income stream for the company in the future, with an estimated $262 million in royalties by 2034. The analyst has incorporated the drug’s approval and final pricing into Scotiabank’s financial model, leading to the slight increase in the price target for Alnylam’s stock.
The update underscores the potential for Alnylam’s top line to continue expanding, with profitability anticipated to be on the horizon by 2026, according to Scotiabank’s model. The recent approvals and the expected revenue from Qfitlia’s sales and royalties contribute to the optimism surrounding Alnylam’s financial outlook. InvestingPro analysis reveals that while the company isn’t currently profitable, analysts expect positive earnings this year, with an EPS forecast of $0.76 for 2025. For deeper insights into Alnylam’s financial health and growth prospects, including exclusive ProTips and detailed valuation metrics, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Alnylam Pharmaceuticals has been in the spotlight with several key developments. The company announced the FDA approval of its drug Qfitlia for hemophilia treatment, marking it as the first and only treatment designed to lower antithrombin for hemophilia A or B patients. This approval is a significant milestone, expanding Alnylam’s portfolio of RNAi therapeutics. Additionally, the FDA has approved vutrisiran for ATTR-cardiomyopathy, contributing to Alnylam’s robust pipeline of innovative treatments.
Analyst firms have responded positively to these advancements. Stifel maintained a Buy rating on Alnylam and raised its price target to $345, citing the FDA approval and premium pricing strategy as beneficial factors. Similarly, Redburn-Atlantic initiated coverage with a Buy rating and a $353 price target, reflecting optimism about Alnylam’s future, particularly with the launch of Amvuttra. Meanwhile, Bernstein and RBC Capital also maintained positive ratings on the company, with price targets of $305 and $330, respectively, underscoring confidence in Alnylam’s market potential.
The analysts’ endorsements come amid a challenging biotech sector, but Alnylam’s recent FDA approvals and strategic positioning have bolstered investor confidence. The company’s ongoing efforts to expand its therapeutic offerings and global market reach, including regulatory submissions for Qfitlia in China and Brazil, further highlight its growth trajectory. These developments suggest a promising outlook for Alnylam as it continues to navigate the competitive landscape of RNAi therapeutics.
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