Alnylam Pharmaceuticals Inc.
) third quarter 2012 net loss of 38 cents per share was wider
than the year-ago loss and the Zacks Consensus Estimate of a loss
of 31 cents per share each. Lower revenues resulted in a wider
loss during the quarter.
Revenues in the reported quarter decreased 19.4% to $16.8
million. Revenues narrowly missed the Zacks Consensus Estimate of
Quarter in Detail
Revenues included $9.3 million from the company's alliance
Roche Holdings Ltd.
), $5.5 million from its partnership with
), in addition to $2.0 million of expense reimbursement and
amortization revenues from
Cubist Pharmaceuticals Inc.
), among others.
Research and development (R&D) expenses fell approximately
9% to $22.1 million. The reduction was primarily due to lower
costs incurred on the ALN-RSV and ALN-VSP programs. The company
expects R&D expenses for the fourth quarter to remain in line
with the third.
General and administrative (G&A) expenses in the reported
quarter increased approximately 43.1% year over year to $12.8
million. The increase in G&A expenses was primarily
attributable to the hike in consulting and professional services
related to the company's business and legal activities. The
company expects G&A expenses to remain at this level in the
final quarter of 2012. Interest income remained flat at $0.3
million for the third quarter of 2012.
2012 Cash Balance Projection
Alnylam now expects to end 2012 with cash, cash equivalents
and total marketable securities in excess of $280 million
(previous expectation: excess of $250 million).
Gross Proceeds from Regulus IPO
Regulus Therapeutics Inc., founded by Alnylam and
Isis Pharmaceuticals, Inc.
), recently raised $80.9 million in gross proceeds relating to
its Initial Public Offering (IPO) and other financial
transactions. Notably, in October this year, the company closed
The gross proceedings include $50.9 million from the sale of
common stock in the IPO, $25.0 million from the sale of common
stock in a private placement to
) and $5.0 million from the sale of a convertible note to
) in August this year.
In September 2007, Alnylam and Isis Pharma joined forces to
establish Regulus, a company focused on microRNA (mRNA)
therapeutics. In October 2010,
) made an equity investment in the company. As of June 30, 2012,
Regulus was jointly owned by Alnylam (45%), Isis Pharma (46%) and
Regulus is evaluating microRNA therapeutics in several areas
including oncology, fibrosis, hepatitis C virus infection,
multiple sclerosis and atherosclerosis. The company has
collaborated with several companies including
), Sanofi, AstraZeneca and Biogen for microRNA therapeutics.
We are encouraged by impressive phase I results demonstrated
by Alnylam's candidate ALN-TTR02, which was presented during the
quarter. The candidate is being developed for the treatment of
TTR-mediated amyloidosis (ATTR). Patient enrollment for the phase
II study on ALN-TTR02 is currently under way and the trial is
expected to be completed in mid 2013.
We believe that investor focus will remain on Alnylam's
pipeline going forward. We currently have a Neutral
recommendation on Alnylam. The stock carries a Zacks #3 Rank
(Hold rating) in the short run.
ALNYLAM PHARMA (ALNY): Free Stock Analysis
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