On Thursday, Goldman Sachs (NYSE:GS) reiterated its Buy rating on Alnylam Pharmaceuticals (NASDAQ:ALNY) with a price target of $370.00. The firm's optimism is rooted in the potential market capture of Amvuttra for ATTR-cardiomyopathy, following the supplemental NDA submission.
The company aims to position Amvuttra as the first-line treatment choice among approximately 18,000 treatment-naive patients globally. This strategy is expected to pave the way for adoption in about 20,000 patients currently progressing on tafamidis, especially as Amvuttra gains traction and switching protocols become more established post-tafamidis' patent expiration.
Alnylam's launch strategy for Amvuttra in ATTR-cardiomyopathy includes leveraging existing infrastructure and experience from its use in hereditary ATTR-polyneuropathy. The company notes that approximately 65% of healthcare professionals, primarily cardiologists who treat the majority of patients, are already covered. Alnylam also plans to utilize the existing J-code for buy-and-bill reimbursement, simplifying the process for healthcare providers.
Access is another focal point, with the expectation that the majority of patients will incur no out-of-pocket costs and that Part B coverage will adhere to the label, offering an advantage over Part D drugs which may face increased utilization management under the redesigned system.
The company's broader pipeline also shows promise, with plans to reveal Phase 3 development plans for ALN-TTRsc04, which could potentially offer annual or biannual dosing, in the first quarter of 2025. Alnylam is not only focused on the ATTR market but also on progressing its pipeline in other areas, including a Phase 2 initiation in Alzheimer's disease by the end of the year and Investigational New Drug (IND) submissions for muscle and adipose targets in the upcoming year.
Goldman Sachs' continued support for Alnylam Pharmaceuticals is driven by the firm's confidence in Amvuttra's profile and the company's capacity to secure a significant share in the TTR market. The financial institution is closely monitoring Alnylam's progress, particularly in the specialty and rare disease market, where efficacy is becoming more critical to payors than price alone.
In other recent news, Alnylam Pharmaceuticals has been making significant strides in the biopharmaceutical sector. The company's Q2 earnings report exceeded expectations in both revenue and profit, leading to an updated 2024 revenue guidance of between $1.575 billion and $1.65 billion. This financial success is primarily attributed to the growth of its TTR franchise and a milestone payment from a licensing agreement with Regeneron (NASDAQ:REGN).
In addition, Alnylam has demonstrated promising clinical data from the HELIOS-B Phase 3 trial for its treatment of ATTR-CM. The positive results have led to the submission of a supplemental New Drug Application (sNDA) to the FDA for vutrisiran, a treatment for ATTR amyloidosis with cardiomyopathy. Analyst firms including Goldman Sachs, TD Cowen, BofA Securities, Piper Sandler, and Canaccord Genuity have maintained positive ratings on Alnylam, reflecting these recent developments.
Alnylam's commercial strategy for the launch of Amvuttra in treating ATTR-CM also received positive feedback from BofA Securities. The company plans to establish Amvuttra as the first-line treatment of choice for this condition, leveraging the encouraging HELIOS-B trial data and a more convenient dosing regimen. The firm's continued support is reflected in the maintained Buy rating and $307 price objective for Alnylam Pharmaceuticals' stock.
Furthermore, in collaboration with BridgeBio Pharma (NASDAQ:BBIO), Alnylam presented a new post hoc analysis of recurrent all-cause mortality and cardiovascular-related hospitalization events. The company also plans to expand its sales force to target an estimated 5,000 cardiologists currently prescribing Vyndamax.
InvestingPro Insights
Alnylam Pharmaceuticals' strong market position and growth potential, as highlighted in Goldman Sachs' analysis, are further supported by recent financial data and expert insights from InvestingPro. The company's impressive revenue growth of 89.46% over the last twelve months, with a notable 107% increase in the most recent quarter, underscores its expanding market presence. This aligns well with Goldman Sachs' optimism regarding Amvuttra's potential in the ATTR-cardiomyopathy market.
An InvestingPro Tip reveals that 10 analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in Alnylam's near-term financial performance. This positive sentiment is reflected in the stock's performance, with a robust 60.24% price return over the past year and a significant 77.74% increase in the last six months.
Despite these encouraging signs, it's worth noting that Alnylam is not currently profitable, with a negative P/E ratio. However, the company's impressive gross profit margin of 87% indicates strong pricing power and efficient cost management, which could be crucial as it expands its product portfolio and market reach.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on Alnylam Pharmaceuticals, providing a deeper understanding of the company's financial health and market position.
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