Alnylam Pharmaceuticals Inc.
) recently began an underwritten public offering of shares of its
common stock. Alnylam expects to raise around $125 million from
the public offering.
Underwriters are expected to have a 30-day option to purchase
an additional 15% of the shares sold to cover over-allotments, if
any. The company did not provide any details regarding the
completion of the offering. The actual size and the terms of the
offering are also not known.
The company expects to exit 2012 with a cash balance of around
$225 million. We expect the fund from the net proceeds to be
utilized in advancing the company's research and development
programs. Earlier this month, Alnylam gave a brief update on its
key "Alnylam 5x15" pipeline and partner program for the next two
years (2013 and 2014).
Alnylam plans to advance its familial amyloidotic
polyneuropathy (FAP) candidate, ALN-TTR02, into phase III
studies. We note that the candidate is currently in a phase II
study, with results expected in mid-2013. Moreover, the company
intends to commence an open-label extension study on the
candidate in mid-2013 as a long-term treatment for patients
participating in the ongoing phase II study.
Alnylam has plans to complete a phase I study on another
candidate ALN-TTRsc, being developed for the treatment of
patients suffering from familial amyloidotic cardiomyopathy
(FAC). The company plans to move the candidate into a pilot phase
II study in late 2013.
The company also plans to expand its 'Alnylam 5x15' pipeline
with ALN-AT3 and ALN-AS1, which are being developed for the
treatment of hemophilia and rare bleeding disorders (RBD) and
acute intermittent porphyria (AIP), respectively.
We expect investor focus to remain on Alnylam's pipeline. We
currently have a Neutral recommendation on Alnylam. The stock
carries a Zacks Rank #4 (Sell). However, other pharma stocks such
Peregrine Pharmaceuticals Inc
) carry a Zacks Rank #1 (Strong Buy).
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