ALNY - 35% Surge Just the Beginning? Alnylam's Stock Poised for Massive Gains on Heart Drug Success.
2024-07-11 06:30:00 ET
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Could Alnylam Pharmaceuticals (NASDAQ: ALNY ) become a household name in 2024? At the very least, the company should be well known in the medical community. If you like to wager small amounts of money on biotechnology stocks , then you really ought to consider Alnylam Pharmaceuticals stock.
As we’ll discuss in a moment, Alnylam Pharmaceuticals didn’t start off 2024 with perfect financials. However, a recent announcement indicates a breakthrough moment for Alnylam Pharmaceuticals and, potentially, for some heart-condition patients. So, keep an eye on this hidden gem of a company.
ALNY’s Financials Are Imperfect but Improving
Just to recap, Alnylam Pharmaceuticals specializes in RNAi (RNA interference) therapeutics . The company describes RNAi as a “natural cellular process of gene silencing.”
Alnylam Pharmaceuticals claims to have “led the RNAi Revolution,” but being a revolutionary isn’t the same as being profitable. During this year’s first quarter, Alnylam Pharmaceuticals reported a non-GAAP earnings loss of 16 cents per share .
Losing only 16 cents per share isn’t terrible when the share price is around $250. Besides, Alnylam Pharmaceuticals certainly showed improvement over the company’s loss of $1.06 per share in the year-earlier quarter.
Alnylam Pharmaceuticals’ bottom line could continue to improve if the company were to find a significant revenue source. On that topic, Alnylam Pharmaceuticals has an opportunity to tap into a specific cardiovascular-disease market while potentially saving lives.
A Breakthrough Moment
Why did Alnylam Pharmaceuticals stock surge by more than 35% on June 24? It’s not a big mystery, as Alnylam Pharmaceuticals announced positive clinical data for its heart-health drug, vutrisiran.
According to the company, vutrisiran is an “investigational RNAi therapeutic in development to treat ATTR amyloidosis with cardiomyopathy.” Bloomberg characterized this condition as a “ progressive and deadly form of heart disease.”
A Barron’s report suggested that Alnylam Pharmaceuticals is about to achieve “ profitability for the first time in its history” because of this medical breakthrough. This seems realistic since, as we mentioned earlier, Alnylam Pharmaceuticals only lost 16 cents per share in Q1 of 2024.
Concerning the clinical study, vutrisiran demonstrated statistically significant reductions in “all-cause mortality and recurrent cardiovascular events.” Moreover, the drug appeared to be safe and well tolerated. As Morgan Stanley analysts summed it all up, “These data represent our best-case scenario .”
Alnylam Pharmaceuticals Stock: Success Begets Success
The Alnylam Pharmaceuticals share price already went up in June, but this doesn’t mean the rally is over. I fully expect Alnylam Pharmaceuticals’ clinical victory to lead to more breakthrough moments.
But then, future victories can’t be guaranteed in the unpredictable world of biotechnology. Therefore, risk-tolerant investors can take a small but confident position in Alnylam Pharmaceuticals stock. Then, keep an eye out for new updates as Alnylam Pharmaceuticals advances the frontiers of cardiovascular-health treatments.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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