Alnylam Pharmaceuticals Earnings: Here’s Why Investors are Ambivalent Now

Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Alnylam Pharmaceuticals, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.29 in the quarter versus EPS of $-0.25 in the year-earlier quarter.

Revenue: Decreased 58.33% to $8.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Alnylam Pharmaceuticals, Inc. reported adjusted EPS loss of $0.29 per share. By that measure, the company beat the mean analyst estimate of $-0.35. It missed the average revenue estimate of $8.99 million.

Quoting Management: “This was an exceptional, data-rich quarter and recent period for Alnylam, where we reported positive clinical results from multiple ‘Alnylam 5×15’ programs. First, we presented positive interim data from our Phase II multi-dose trial of ALN-TTR02, where we showed up to 93% knockdown of circulating wild-type and mutant TTR in ATTR patients. In the coming weeks we plan to have patients treated in this Phase II study roll over into an open-label extension study, which will include a number of clinical endpoint measurements with initial data expected to be presented in 2014. We also remain on track to start a Phase III pivotal trial for ALN-TTR02 by the end of 2013,” said John Maraganore, Ph.D., Chief Executive Officer of Alnylam. “In addition, we were excited to report positive top-line results from our Phase I clinical study of ALN-TTRsc, a subcutaneously administered RNAi therapeutic targeting TTR for the treatment of ATTR. Specifically, we reported that ALN-TTRsc achieved greater than 80% knockdown of serum TTR and was generally safe and well tolerated. Importantly, we believe these clinical results establish human translation for RNAi therapeutics using our GalNAc-siRNA conjugate delivery platform, with implications for the entirety of our ‘Alnylam 5×15’ pre-clinical pipeline, which employs what is now a clinically validated subcutaneous delivery approach. With these recent advances, we believe that we are building a compelling opportunity for shareholder value creation with a modular and reproducible approach for development and, ultimately, commercialization of innovative medicines for genetically defined diseases.”

Key Stats (on next page)…

Revenue decreased 53.33% from $18.64 million in the previous quarter. EPS increased to $-0.29 in the quarter versus EPS of $-0.15 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.37 to a loss $0.38. For the current year, the average estimate has moved up from a loss of $1.33 to a loss of $1.29 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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