Alnylam Pharmaceuticals Inc.'s
) second quarter 2012 net loss of 25 cents per share was narrower
than the year-ago loss of 33 cents per share. Higher revenues
coupled with lower costs were primarily responsible for the lower
loss incurred by the company in the second quarter of 2012.
However, the loss was wider than the Zacks Consensus Estimate of a
loss of 18 cents per share.
Revenues in the reported quarter increased 1.3% to $20.9 million.
Revenues were in line with the Zacks Consensus Estimate of $21
Quarter in Details
Revenues included $14 million from the company's alliance with
Roche Holdings Ltd.
), $5.5 million from its partnership with Takeda Pharmaceuticals,
in addition to $1.4 million of expense reimbursement and
amortization revenues from
Cubist Pharmaceuticals Inc.
), among others.
Research and development (R&D) expenses fell approximately
14.1% to $21.7 million. The reduction was primarily on account of
the lower costs incurred on the ALN-RSV and ALN-VSP programs. The
company expects R&D expenses to remain at the same level as the
second quarter in the remaining two quarters of 2012.
General and administrative (G&A) expenses in the reported
quarter increased approximately 33.2% year over year to $11.2
million. The company expects G&A expenses to remain at the same
level in the remaining two quarters of 2012. Interest income
remained flat at $0.3 million for the second quarter of 2012.
2012 Cash Balance Projection
Alnylam expects to end 2012 with cash, cash equivalents and total
marketable securities balance in excess of $250 million. At the end
of the second quarter of 2012, the company had cash, cash
equivalents and total marketable securities worth $292.8 million.
We are encouraged by the impressive results demonstrated by
Alnylam's candidate ALN-TTR02 in an early stage study. The
candidate is being developed for the treatment of TTR-mediated
amyloidosis and is expected to enter into pivotal studies in
We believe that investor focus will remain on Alnylam's pipeline
going forward. We are impressed by the company's "5X15" initiative.
We currently have an Outperform recommendation on Alnylam. The
stock carries Zacks #2 Rank (Buy rating) in the short run.
ALNYLAM PHARMA (ALNY): Free Stock Analysis
CUBIST PHARM (CBST): Free Stock Analysis Report
(RHHBY): ETF Research Reports
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