Alnylam Pharmaceuticals Inc.
) which is actively developing its pipeline, reported
second-quarter results last week and also provided an update on its
pipeline. Alnylam's second quarter 2014 loss of 63 cents per share
was wider than the Zacks Consensus Estimate of a loss of 54 cents
as well as the year-ago loss of 29 cents per share. Results were
hurt by higher expenses.
Alnylam Pharmaceuticals, Inc - Earnings
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Revenues declined 16% from the year-ago quarter to $7.3 million.
The top line also lagged the Zacks Consensus Estimate of $9
million. Lower than expected revenues also contributed to the wider
than expected loss.
The Quarter in Detail
Alnylam's revenues in the second quarter included $5.5 million
from its collaboration with Takeda Pharmaceutical Company Limited (
), in addition to $1.8 million from its alliance with a couple of
Research and development (R&D) expenses were up 84.5% to
$44.7 million primarily due to investments related to pipeline
General and administrative (G&A) expenses increased
approximately 99.1% year over year to $11.5 million driven by
higher non-cash stock-based compensation expense.
Alnylam has made significant progress with its pipeline so far.
The company is evaluating patisiran in the phase III APOLLO study
in transthyretin-mediated amyloidosis (ATTR) patients suffering
from familial amyloidotic polyneuropathy (FAP). Patisiran has
orphan drug status in the EU and the U.S. for the treatment of FAP.
Patisiran also enjoys Fast Track designation in the U.S. for this
indication. Results from this study are expected in about two to
three years from now. The company intends to file for its approval
Additionally, ALN-TTRsc is in a phase II study in patients
suffering from familial amyloidotic cardiomyopathy or senile
systemic amyloidosis. Alnylam plans to advance the candidate in a
phase III study by the end of 2014 presuming positive results from
the phase II study.
Apart from these candidates, Alnylam also has ALN-AT3 (hemophilia),
ALN-AS1 (hepatic porphyrias), ALN-PCSsc (hypercholesterolemia),
ALN-CC5 (complement-mediated diseases) and ALN-HBV (hepatitis B
virus infection) in its pipeline.
In Aug 2014, ALN-AT3 received orphan drug status in the EU for the
treatment of hemophilia A and hemophilia B. Initial data from the
phase I study on ALN-AT3 are expected later this year.
2014 Outlook Maintained
Alnylam expects its R&D expenses to increase in the second half
of 2014 due to the advancement of some of its candidates in the
late stage of development. G&A expenses (excluding non-cash
stock-based compensation expense) are expected to remain consistent
with first-half levels through the next half of the year.
Alnylam continues to expect to end 2014 with cash, cash equivalents
and total marketable securities in excess of $825 million.
We are pleased with Alnylam's efforts to develop its pipeline. With
data read-outs expected in the coming months, we expect the second
half of 2014 to be data rich for the company. We expect investor
focus to remain on pipeline updates from the company.
Alnylam carries a Zacks Rank #3 (Hold). Some better-ranked stocks
in the biotech sector are Actelion Ltd. (
) and Gilead Sciences Inc. (
). Both hold a Zacks Rank #1 (Strong Buy).
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