Stifel raises Alnylam stock price target to $345 on FDA nod

On Monday, Stifel analysts maintained a Buy rating on Alnylam Pharmaceuticals (NASDAQ:ALNY) and increased their price target to $345 from $300, adding to the stock’s impressive 80% gain over the past year. According to InvestingPro data, the company appears slightly undervalued at its current price of $268.46. This adjustment follows the recent U.S. Food and Drug Administration (FDA) approval of Alnylam’s vutrisiran for the treatment of ATTR-cardiomyopathy, a condition affecting the heart.

The Stifel analysts highlighted the FDA’s differentiated label for vutrisiran and Alnylam’s decision to maintain premium pricing as positive factors. They anticipate these elements will contribute to a successful commercial launch. This optimism is supported by Alnylam’s strong revenue growth of 23% in the last twelve months and impressive gross profit margin of 86%. Vutrisiran, which has received strong feedback from key opinion leaders (KOLs), is the only approved silencer for this condition and is expected to be reimbursed via Medicare Part B. According to the analysts, this exclusivity and reimbursement support should lead to significant market penetration in a large and expanding treatment category.

Stifel’s analysts noted the current challenges in the biotech sector, including macroeconomic headwinds and changes in leadership at the FDA, which have put pressure on biotech stocks, particularly those in clinical stages or with higher risk profiles. They believe that companies like Alnylam, which they consider to have "safer" growth prospects, are likely to benefit in this environment.

The analysts have extended their financial model for Alnylam to incorporate a longer-term view of vutrisiran’s peak sales. They have also factored in the potential of the company’s next-generation silencer treatments. This comprehensive analysis underpins their increased price target for Alnylam’s stock.

Alnylam Pharmaceuticals specializes in RNA interference (RNAi) therapies, a cutting-edge approach to treating diseases by silencing specific genes. Vutrisiran, now approved by the FDA, represents a significant advancement in the treatment of ATTR-cardiomyopathy, offering new hope for patients with this condition. With a market capitalization of $34.75 billion and analysts projecting profitability this year, the company’s prospects look promising. For deeper insights into Alnylam’s financial health and growth potential, including 8 additional ProTips and comprehensive valuation metrics, visit InvestingPro.

In other recent news, Alnylam Pharmaceuticals has achieved significant milestones in its drug development and approval processes. The company announced the U.S. Food and Drug Administration’s approval of Qfitlia, a treatment for hemophilia A or B, marking its sixth RNAi therapeutic to receive FDA approval. This approval is part of Alnylam’s strategic plan to expand its RNAi therapeutic pipeline by 2025. Additionally, Alnylam received FDA approval for Amvuttra, a treatment for ATTR amyloidosis with cardiomyopathy, which has been highlighted for its promising results in the HELIOS-B Phase 3 study.

Analysts from multiple firms have weighed in on Alnylam’s recent developments. Redburn-Atlantic initiated coverage with a Buy rating and a $353 price target, expressing optimism about the company’s drug pipeline and recent approvals. Bernstein maintained an Outperform rating with a $305 price target, despite some skepticism from experts about the superiority of Amvuttra over existing treatments. RBC Capital also maintained an Outperform rating with a $330 price target, citing positive expectations for Amvuttra’s market uptake.

H.C. Wainwright maintained a Buy rating with a $500 price target, underscoring the significance of Amvuttra’s approval and Alnylam’s market strategy. The firm highlighted upcoming catalysts such as global expansion efforts and pivotal trials for Alnylam’s next-generation silencer, nucresiran. These recent developments reflect Alnylam’s ongoing efforts to strengthen its position in the pharmaceutical market and expand its therapeutic offerings.

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