Wolfe Research has reaffirmed its Peerperform rating for Alnylam Pharmaceuticals (NASDAQ: ALNY) with a focus on the upcoming regulatory approval of its drug acoramidis, expected in November 2024. The firm predicts a stabilization in the stock's performance until discussions intensify in the first quarter of 2025 regarding the market adoption of acoramidis.
Following news from the European Society of Cardiology on August 30, Alnylam's stock declined by 8%, contrasting with mixed reactions in the sector. Ionis Pharmaceuticals (NASDAQ: NASDAQ:) fell by 4%, while BridgeBio Pharma (NASDAQ:) saw a 13% increase.
The analyst suggests that Alnylam's market activity will likely remain subdued until the approval of acoramidis, which targets treating ATTR-CM, a heart condition. The long-term view includes potential impacts of the Inflation Reduction Act's changes to Medicare Part D, which could significantly reduce out-of-pocket costs for competing drugs like Vyndaqel and acoramidis by January 2025.
Looking ahead, Alnylam could experience a resurgence with the anticipated approval of Amvuttra for ATTR-CM, potentially in the second quarter of 2025 if a priority review voucher is utilized. The company's recent earnings report exceeded expectations, primarily driven by the growth of its TTR franchise and a milestone payment from a licensing agreement with Regeneron (NASDAQ:).
InvestingPro Insights
According to InvestingPro data, Alnylam boasts a robust gross profit margin of 87.0% for the last twelve months, underscoring its ability to manage costs and maintain profitability. The company has seen significant revenue growth, indicating potential for scaling operations and increasing market share. Analysts have revised earnings upwards, reflecting positive sentiment among experts, but profitability is not expected this year.
With the combination of Wolfe Research's outlook and InvestingPro data, stakeholders can gain a comprehensive understanding of Alnylam's financial landscape as it approaches key milestones in its drug approval process.
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