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On Friday, RBC Capital Markets adjusted its outlook for Alnylam Pharmaceuticals (NASDAQ: ALNY), raising the price target from $265.00 to $300.00 while maintaining an Outperform rating.
The revision follows Alnylam's reported product revenue of $410 million, which surpassed the consensus estimate of $367 million. Additionally, the company's financial guidance for the year was increased by approximately 11% at the midpoint, changing from a range of $1.4-1.5 billion to $1.575-1.650 billion.
The analyst noted that the market is keenly anticipating the HELIOS-B study results at the European Society of Cardiology (ESC) meeting. Alnylam has confirmed that it will present Kaplan-Meier curves detailing mortality and recurrent cardiovascular events across all key subgroups, including intent-to-treat, monotherapy, and combination therapy cohorts.
Furthermore, the company's pipeline remains robust with several key developments expected. The next-generation treatment for transthyretin-mediated cardiomyopathy (TTR-CM), which may offer annual dosing, is slated to enter Phase III clinical trials around the end of the year. An update on the Phase I study for the amyloid precursor protein (APP) is also anticipated later in the year.
The analyst highlighted Alnylam's strong commercial performance and the potential for significant growth in the market for its therapies. The company's treatment showed a 36% reduction in mortality, which is notable when compared to the 19% reduction demonstrated by GLP1s in a similar context.
With the current standard of care generating $5 billion in annual sales and growing at a 65% compound annual growth rate, and with 80% of the target patient population not yet on therapy, the analyst sees a substantial opportunity for Alnylam.
Alnylam Pharmaceuticals reported a 34% year-over-year increase in global net product revenues, reaching $410 million. This significant growth was primarily driven by a 37% increase in the TTR franchise. Moreover, the company has raised its full-year revenue guidance by approximately 11% at the midpoint.
In addition, Alnylam has reported positive top-line results from the HELIOS-B Phase 3 study of vutrisiran in ATTR cardiomyopathy. The study demonstrated improved cardiovascular outcomes and a mortality benefit compared to placebo. These results are expected to be presented in detail at the upcoming European Society of Cardiology Congress.
Alnylam is also preparing for potential product launches next year and has plans to file three investigational new drug applications by the end of the year. Furthermore, Phase 2 studies for mivelsiran in Alzheimer's disease and ALN-BCAT in hepatocellular carcinoma are in the pipeline.
InvestingPro Insights
Alnylam Pharmaceuticals (NASDAQ:ALNY) has been a topic of interest following RBC Capital Markets' price target adjustment. In light of recent financial results and the company's promising pipeline, investors might find the following metrics and InvestingPro Tips insightful:
InvestingPro Data indicates that Alnylam's market cap stands at $34.39 billion, with a significant revenue growth of 75.2% over the last twelve months as of Q1 2024. This growth is further highlighted by a quarterly revenue increase of 54.82% in Q1 2024, demonstrating the company's strong commercial performance. Despite not being profitable over the last twelve months, with a P/E ratio of -106.46, the gross profit margin remains high at 83.95%, suggesting efficient cost management.
InvestingPro Tips reveal that the stock is currently trading near its 52-week high, with a price 99.11% of that peak. The recent performance has been robust, with a notable 78.7% return over the last three months. However, investors should note that the RSI suggests the stock is in overbought territory, which could indicate a potential pullback. Moreover, analysts do not anticipate Alnylam will be profitable this year. It's also worth mentioning that the company does not pay a dividend, which may influence investment strategies focused on income generation.
For those seeking a deeper analysis, InvestingPro offers additional tips on Alnylam Pharmaceuticals, which can be accessed for more comprehensive investment strategies and insights.
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