JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Barclays has reiterated its Overweight rating on Alnylam Pharmaceuticals (NASDAQ: ALNY) with a price target of $295.00.
The firm's stance comes after Alnylam presented comprehensive data from its Phase 3 HELIOS-B study at the European Society of Cardiology (ESC) Congress 2024.
The data demonstrated a statistically significant reduction in all-cause mortality (ACM) at 33 to 36 months, with a hazard ratio (HR) of 0.694 and a p-value of 0.0389.
The survival curves showed a separation comparable to previous studies, around 18 to 19 months, for patients with transthyretin-mediated amyloidosis (ATTR-CM) who were on baseline tafamidis treatment.
During Alnylam's in-person investor event, the company's management highlighted their goal to achieve profitability by 2026, despite the anticipated increased costs associated with the launch of their products.
The key opinion leaders (KOLs) provided feedback suggesting that vutrisiran, Alnylam's investigational therapy, has a clinical profile ranging from comparable to clearly better than existing stabilizers for ATTR-CM.
The KOLs anticipate prescribing vutrisiran to 25-50% of newly diagnosed patients with ATTR-CM. Additionally, it is expected that the majority of second-line (2L) patients currently treated with tafamidis might switch to vutrisiran. The analyst noted that the current peak revenue assumption for vutrisiran, which ranges from $5.5 to $6 billion, might be too conservative based on these recent findings.
Barclays' reiteration of the Overweight rating reflects their positive outlook on Alnylam Pharmaceuticals' potential in the market, particularly with the promising clinical data and the expected adoption of vutrisiran by healthcare professionals treating ATTR-CM.
In other recent news, Alnylam Pharmaceuticals' HELIOS-B Phase 3 study of vutrisiran, aimed at patients with ATTR amyloidosis with cardiomyopathy, met all primary and secondary endpoints.
The recent development suggests vutrisiran's potential as a standard care for this fatal condition. Alnylam plans to submit these data with global regulatory authorities, including a supplemental New Drug Application.
Analyst firms, including BMO Capital, RBC Capital, and Goldman Sachs, have maintained or upgraded their positive ratings on Alnylam, reflecting confidence in the potential market success of vutrisiran. BMO Capital estimates peak sales could reach around $8 billion.
Alnylam's second-quarter earnings report surpassed expectations in both revenue and profit, primarily due to the growth of its TTR franchise and a milestone payment from a licensing agreement with Regeneron (NASDAQ:REGN). The company updated its 2024 revenue guidance, now expecting product revenues to reach between $1.575 billion and $1.65 billion.
Alnylam is also preparing for its TTR investor day, which is expected to shed light on the commercial landscape and strategy for vutrisiran in cardiomyopathy.
InvestingPro Insights
As Barclays maintains a positive stance on Alnylam Pharmaceuticals (NASDAQ:ALNY), InvestingPro data and tips offer additional insights into the company's financial health and market performance. Alnylam's impressive gross profit margin stands at 87.0% as of the last twelve months leading up to Q2 2024, showcasing their strong ability to manage costs relative to revenue. While analysts have revised their earnings upwards for the upcoming period, signaling confidence in Alnylam's prospects, it is notable that the company is not expected to be profitable this year, aligning with management's goal to reach profitability by 2026.
InvestingPro data also reveals a significant 74.6% return over the last three months, indicating a robust short-term performance in the market. This is complemented by a large price uptick over the last six months, with a price total return of 72.13%. The market has responded well to Alnylam's developments, reflected in the company's market capitalization of $33.72 billion. However, with a high EBITDA valuation multiple and a negative P/E ratio, investors might be paying a premium for growth expectations.
For those seeking a deeper dive into Alnylam's financial metrics and market performance, InvestingPro offers additional InvestingPro Tips, providing a comprehensive analysis of the company's investment potential. Visit InvestingPro for more tips on Alnylam and to understand the full picture of its market valuation and future outlook.
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