On Monday, Goldman Sachs reiterated its Buy rating on Alnylam Pharmaceuticals, with a price target of $370.00.
The firm's positive stance comes after the presentation of exploratory biomarker and echocardiographic data from the Phase 3 HELIOS-B study of Amvuttra in ATTR-cardiomyopathy at the virtual Heart Failure Society of America meeting.
The study reported significant benefits on NT-proBNP and troponin I, which are markers of cardiovascular risk, in both the overall and monotherapy groups at 30 months. Notably, these benefits were observed as early as six months, with indications of additive benefit over time when used in conjunction with tafamidis.
The data also showed consistent improvements in cardiac structure and function based on echocardiography assessments. "Noting that Amvuttra's clinical profile has largely been de-risked from the detailed results at ESC, we view this data as incrementally supportive," said Goldman Sachs.
The focus for Alnylam Pharmaceuticals now shifts to regulatory considerations, including the possibility of an FDA Advisory Committee meeting, and the projected revenue trajectory, with Goldman Sachs estimating peak sales of approximately $5.3 billion by 2035. The firm cited positive feedback from cardiologists and anticipates further commercial insights at Alnylam's TTR Investor Day scheduled for October 9. This event is expected to provide considerations related to Amvuttra's Part B status.
Additionally, Goldman Sachs is looking forward to details on the next-generation ALN-TTRsc04, expected by the end of 2024. The firm continues to monitor Alnylam's progress in other therapeutic areas, including neurology and obesity.
In other recent news the company's second-quarter earnings report surpassed expectations in both revenue and profit, primarily due to the growth of its TTR franchise and a milestone payment from a licensing agreement with Regeneron (NASDAQ:REGN). Consequently, Alnylam updated its 2024 revenue guidance, now expecting product revenues to reach between $1.575 billion and $1.65 billion.
Analysts from firms such as BofA Securities, TD Cowen, and Stifel have maintained their Buy ratings on Alnylam, reflecting confidence in the company's market potential.
Alnylam is also preparing for potential regulatory approval, with plans to submit a supplemental New Drug Application by the end of 2024. The company is actively preparing for a potential expansion of the label for its product Amvuttra, anticipated in the first half of 2025.
Furthermore, Alnylam is planning to expand its sales force significantly, with an initial increase of 30-40%. This expansion is aimed at targeting approximately 5,000 cardiologists currently prescribing Vyndamax, with one-third of these healthcare professionals already familiar with Alnylam's products.
InvestingPro Insights
Alnylam Pharmaceuticals' recent positive data presentation aligns with several InvestingPro metrics and tips that highlight the company's strong market position and growth potential. The company's impressive revenue growth of 89.46% over the last twelve months, coupled with a robust gross profit margin of 87%, underscores its ability to capitalize on breakthrough treatments like Amvuttra.
InvestingPro Tips indicate that 10 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in Alnylam's pipeline and commercial prospects. This optimism is reflected in the stock's performance, with a 55.23% price return over the past year and trading near its 52-week high.
While the company is not currently profitable, its strong revenue growth and the potential success of Amvuttra in the ATTR-cardiomyopathy market could pave the way for future profitability. The high EBIT and EBITDA valuation multiples suggest that investors are pricing in significant growth expectations, aligning with Goldman Sachs' bullish outlook and $370 price target.
For investors seeking a deeper understanding of Alnylam's potential, InvestingPro offers 13 additional tips, providing a comprehensive analysis of the company's financial health and market position.
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