A month has gone by since the last earnings report for Alnylam Pharmaceuticals, Inc . ALNY . Shares have added about 12.6% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is ALNY due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Alnylam's Q1 Loss Wider Than Expected, Sales Miss
Alnylam incurred a loss of $1.22 per share (excluding stock based compensation expense), wider than the year ago loss of $1.06 per share and wider than the Zacks Consensus Estimate of a loss of $1.18
Quarterly revenues improved 15.3% to $21.9 million, but missed the Zacks Consensus Estimate of $36 million. The top line in the quarter included $18.9 million earned under the company's collaboration agreement with Sanofi's subsidiary, Genzyme as well as $1.3 million from the company's alliance with The Medicines Company and $1.7 million from other sources.
Quarter in Detail
Adjusted research and development (R&D) expenses increased 10.7% from the year-ago period to $86.7 million. Adjusted general and administrative (G&A) expenses doubled from the year ago quarter to $63 million.
Alnylam remains on track to end the year with approximately $1 billion in cash, cash equivalents and fixed income marketable. Adjusted R&D expenses are expected in the range of $420 to $460 million up from the prior guidance of $400 million to $440 million. The company reiterated its outlook for adjusted selling, general and administrative expenses and expects them to be in the range of $280 million to $320 million.
Alnylam received acceptance from the FDA and the European Medicines Agency (EMA) of patisiran's new drug application (NDA) and Marketing Authorisation Application (MAA), respectively. Patisiran is an investigational RNAi therapeutic for the treatment of patients with hereditary ATTR (hATTR) amyloidosis with polyneuropathy.
The company expects to gain regulatory approval for patisiran from the FDA in mid-2018. The FDA has set an action date of Aug 11, 2018, and launch patisiran in the United States shortly after that.
Alnylam expects to report topline interim results from the ENVISION Phase III trial for givosiran by September 2018. The company also expects to initiate the lumasiran phase III study in mid-2018.
The company announced a strategic restructuring of the its rare disease alliance with Sanofi, originally formed in 2014, with Alnylam obtaining global rights to its ATTR amyloidosis programs - patisiran and ALN-TTRsc02 - and Sanofi obtaining global rights to fitusiran. Alnylam and Sanofi expect to enroll patients in the ATLAS phase III program of fitusiran in patients with hemophilia An and B with or without inhibitors throughout the year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter compared to one lower.
Alnylam Pharmaceuticals, Inc. Price and Consensus
Alnylam Pharmaceuticals, Inc. Price and Consensus | Alnylam Pharmaceuticals, Inc. Quote
At this time, ALNY has a poor Growth Score of F, however its Momentum is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Estimates have been broadly trending upward for the stock and the magnitude of these revisions looks promising. Interestingly, ALNY has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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