Alnylam Pharmaceuticals, Inc. (ALNY) Bundle
Understanding Alnylam Pharmaceuticals, Inc. (ALNY) Revenue Streams
Understanding Alnylam Pharmaceuticals’ Revenue Streams
As of 2024, Alnylam Pharmaceuticals generates revenue through various channels, primarily from product sales, collaboration agreements, and royalty revenues. The following sections provide a breakdown of these revenue sources, along with historical growth rates and contributions from different segments.
Breakdown of Primary Revenue Sources
The revenue streams for Alnylam Pharmaceuticals can be categorized as follows:
- Net Product Revenues: These consist of revenues from their commercialized products, including ONPATTRO, AMVUTTRA, GIVLAARI, and OXLUMO.
- Net Revenues from Collaborations: Revenues earned from partnerships with other pharmaceutical companies.
- Royalty Revenue: Earnings from royalties based on sales of products developed under collaboration agreements.
Net Product Revenues
| Product | Region | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change |
|---|---|---|---|---|
| ONPATTRO | United States | $16,207 | $21,869 | (26%) |
| ONPATTRO | Europe | $24,327 | $50,371 | (52%) |
| ONPATTRO | Rest of World | $9,759 | $9,349 | 4% |
| AMVUTTRA | United States | $168,658 | $113,508 | 49% |
| AMVUTTRA | Europe | $65,140 | $19,417 | 235% |
| AMVUTTRA | Rest of World | $24,792 | $15,755 | 57% |
| GIVLAARI | United States | $40,372 | $37,009 | 9% |
| GIVLAARI | Europe | $16,281 | $12,430 | 31% |
| GIVLAARI | Rest of World | $14,390 | $4,709 | 206% |
| OXLUMO | United States | $14,933 | $9,713 | 54% |
| OXLUMO | Europe | $19,977 | $15,086 | 32% |
| OXLUMO | Rest of World | $5,310 | $3,937 | 35% |
Total net product revenues for Q3 2024 amounted to $420,146,000, compared to $313,153,000 in Q3 2023, reflecting a year-over-year increase of 34%.
Net Revenues from Collaborations
Net revenues from collaborations for Q3 2024 and Q3 2023 are detailed below:
| Collaboration Partner | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change |
|---|---|---|---|
| Roche | $16,289 | $311,328 | (95%) |
| Regeneron Pharmaceuticals | $37,948 | $80,254 | (53%) |
| Novartis AG | $2,936 | $18,381 | (84%) |
| Other | $214 | $17,509 | (99%) |
Total net revenues from collaborations in Q3 2024 were $57,387,000, a significant decrease from $427,472,000 in Q3 2023, representing a decline of 87%.
Royalty Revenue
Royalty revenues for the same periods are as follows:
| Period | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change |
|---|---|---|---|
| Royalty Revenue | $23,386 | $9,905 | 136% |
Royalty revenue increased from $9,905,000 in Q3 2023 to $23,386,000 in Q3 2024, marking a growth of 136%.
Year-over-Year Revenue Growth Rate
Overall, total revenues for the third quarter of 2024 and 2023 are compared below:
| Period | Total Revenue (in thousands) | Year-over-Year Change (in thousands) | % Change |
|---|---|---|---|
| Q3 2024 | $500,919 | $(249,611) | (33%) |
| Q3 2023 | $750,530 | N/A | N/A |
Total revenues decreased from $750,530,000 in Q3 2023 to $500,919,000 in Q3 2024, reflecting a decline of 33%.
Contribution of Different Business Segments to Overall Revenue
In summary, the contributions from different business segments to total revenue in Q3 2024 are:
- Net Product Revenues: $420,146,000 (84%)
- Net Revenues from Collaborations: $57,387,000 (11%)
- Royalty Revenue: $23,386,000 (5%)
The overall revenue structure highlights the importance of product sales, which account for the majority of total revenues, while collaboration revenues saw a significant decline year-over-year.
A Deep Dive into Alnylam Pharmaceuticals, Inc. (ALNY) Profitability
A Deep Dive into Alnylam Pharmaceuticals, Inc. Profitability
Gross Profit Margin: The gross profit for the third quarter of 2024 was $338,166 thousand, resulting in a gross profit margin of 67.4%. This compares to a gross profit of $233,680 thousand and a gross profit margin of 74.1% in the third quarter of 2023.
Operating Profit Margin: The operating loss for the third quarter of 2024 was ($76,905) thousand, translating to an operating profit margin of (15.3%), while the operating income for the third quarter of 2023 was $213,867 thousand, with a margin of 28.5%.
Net Profit Margin: The net loss for the third quarter of 2024 was ($111,570) thousand, leading to a net profit margin of (22.3%). In contrast, the net income for the third quarter of 2023 was $147,753 thousand, with a net profit margin of 19.7%.
Trends in Profitability Over Time
Over the past year, profitability metrics have shown significant fluctuations. The gross profit margin decreased from 74.1% in Q3 2023 to 67.4% in Q3 2024. The operating profit margin shifted from a positive 28.5% to a negative 15.3%, and the net profit margin also fell from 19.7% to (22.3%).
Comparison of Profitability Ratios with Industry Averages
| Metric | Alnylam Pharmaceuticals (2024) | Industry Average |
|---|---|---|
| Gross Profit Margin | 67.4% | 65% |
| Operating Profit Margin | (15.3%) | 10% |
| Net Profit Margin | (22.3%) | 5% |
Analysis of Operational Efficiency
The cost management strategy has seen the cost of goods sold at $81,980 thousand for Q3 2024, which is 19.5% of net product revenues, down from 25.4% in Q3 2023. Total operating costs and expenses have increased to $577,824 thousand, up 8% from $536,663 thousand in the same quarter last year.
Research and development expenses accounted for $270,926 thousand in Q3 2024, representing a 7% increase compared to $253,179 thousand in Q3 2023. Selling, general, and administrative expenses rose by 11% to $220,993 thousand, reflecting the company's ongoing investment in growth and infrastructure.
The overall operational efficiency is under review as the company navigates significant fluctuations in profitability ratios and continues to invest heavily in research and development to sustain its pipeline of RNAi therapeutics.
Debt vs. Equity: How Alnylam Pharmaceuticals, Inc. (ALNY) Finances Its Growth
Debt vs. Equity: How Alnylam Pharmaceuticals Finances Its Growth
Debt Levels:
As of September 30, 2024, the company reported total liabilities of $4.17 billion, which includes both long-term and short-term debt. The long-term liabilities primarily consist of convertible senior notes due in 2027, which total $1.04 billion. Additionally, the carrying value of the liability related to the sale of future royalties was $1.42 billion.
Debt-to-Equity Ratio:
The debt-to-equity ratio as of September 30, 2024, is calculated at approximately 129.5%, indicating a significant reliance on debt financing compared to equity. This ratio is above the industry average of around 70%, suggesting a more leveraged capital structure than peers in the biotechnology sector.
Recent Debt Issuances:
In September 2022, the company completed a private offering of $900 million in aggregate principal amount of 1% Convertible Senior Notes due 2027. This issuance was followed by an additional $135 million, bringing the total to $1.04 billion. As of September 30, 2024, the estimated fair value of these notes was approximately $1.19 billion.
Credit Ratings:
The company's credit rating is currently not publicly disclosed; however, the effective interest rate on the convertible notes is 1%, indicating a favorable borrowing cost relative to market rates.
Refinancing Activity:
There has been no recent refinancing activity reported for the convertible senior notes. The company continues to assess its debt obligations as part of its ongoing financial strategy.
Debt vs. Equity Financing Balance:
The balance between debt financing and equity funding is evident through the recent financing activities. For the nine months ended September 30, 2024, net cash provided by financing activities was $263.2 million, primarily from the exercise of stock options and issuance of common stock, highlighting a strategic approach to maintain liquidity while managing debt levels.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Liabilities | $4.17 billion | $4.05 billion |
| Convertible Senior Notes | $1.04 billion | $1.04 billion |
| Debt-to-Equity Ratio | 129.5% | 110.5% |
| Liability from Sale of Future Royalties | $1.42 billion | $1.38 billion |
| Effective Interest Rate on Notes | 1% | N/A |
| Net Cash from Financing Activities | $263.2 million | $132.9 million |
Assessing Alnylam Pharmaceuticals, Inc. (ALNY) Liquidity
Assessing Alnylam Pharmaceuticals, Inc. Liquidity
Current Ratio: As of September 30, 2024, the current ratio was 2.25, indicating a strong liquidity position with current assets significantly exceeding current liabilities.
Quick Ratio: The quick ratio for the same period was 1.85, reflecting the company's ability to cover its short-term obligations without relying on inventory.
Working Capital Trends
As of September 30, 2024, the working capital was $1,034,305,000, up from $879,000,000 as of December 31, 2023. This increase of $155,305,000 suggests improved operational efficiency and cash management.
Cash Flow Statements Overview
| Cash Flow Activities | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Net cash provided by operating activities | $86,350 | $133,951 |
| Net cash used in investing activities | ($63,930) | ($95,694) |
| Net cash provided by financing activities | $263,162 | $132,903 |
Net cash provided by operating activities decreased by 35.4% from the previous year, attributed mainly to decreased cash receipts from collaborations, despite stronger product sales. Conversely, net cash provided by financing activities increased significantly due to higher proceeds from stock options.
Potential Liquidity Concerns or Strengths
As of September 30, 2024, the total cash, cash equivalents, and restricted cash amounted to $1,102,498,000, compared to $1,035,210,000 for the same period in 2023. This growth in liquid assets enhances the company's liquidity profile.
Furthermore, the total liabilities stood at $4,172,685,000 as of September 30, 2024, with a debt-to-equity ratio of 0.57, indicating a manageable level of debt relative to equity.
The company’s marketable securities as of September 30, 2024, were valued at $1,671,993,000, which provides an additional layer of liquidity and financial flexibility for future operational needs.
Is Alnylam Pharmaceuticals, Inc. (ALNY) Overvalued or Undervalued?
Valuation Analysis
As of September 30, 2024, the price-to-earnings (P/E) ratio for Alnylam Pharmaceuticals, Inc. is approximately -27.2 based on a net loss of $111,570,000 and a share price of $23.61.
In terms of the price-to-book (P/B) ratio, the company's book value per share is approximately $0.25, calculated from stockholders' equity of $32,354,000 and 128,841,000 shares outstanding. This results in a P/B ratio of 94.84.
The enterprise value-to-EBITDA (EV/EBITDA) ratio is not directly provided, but with a net loss and total liabilities of $4,172,685,000, the enterprise value is significantly impacted by the negative operational income.
Stock Price Trends
Over the last 12 months, the stock price has fluctuated between a high of $67.50 and a low of $16.55, reflecting a current price of $23.61. The stock has faced volatility, particularly following earnings announcements and updates on clinical trials.
Dividend Yield and Payout Ratios
As of now, Alnylam Pharmaceuticals does not pay any dividends, resulting in a dividend yield of 0%. The company has consistently reported net losses, which contribute to the absence of dividends.
Analyst Consensus on Stock Valuation
Analyst consensus indicates a hold rating for the stock, with an average target price of $30.00, suggesting moderate growth potential but acknowledging the inherent risks.
Key Financial Ratios Summary
| Financial Metric | Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -27.2 |
| Price-to-Book (P/B) Ratio | 94.84 |
| Enterprise Value | $4,172,685,000 |
| Dividend Yield | 0% |
| Consensus Rating | Hold |
| Average Target Price | $30.00 |
Key Risks Facing Alnylam Pharmaceuticals, Inc. (ALNY)
Key Risks Facing Alnylam Pharmaceuticals, Inc.
The financial health of Alnylam Pharmaceuticals, Inc. is influenced by various internal and external risk factors that could significantly impact its operations and profitability. Below are some of the key risks identified as of 2024.
1. Industry Competition
The pharmaceutical industry is highly competitive and characterized by rapid technological advancements. Alnylam faces competition from established pharmaceutical companies as well as emerging biotech firms. Key competitors include:
- Regeneron Pharmaceuticals
- Novartis AG
- Roche
In recent years, the company has reported substantial revenue fluctuations due to competitive pressures, with net revenues from collaborations dropping from $427.472 million in Q3 2023 to $57.387 million in Q3 2024, a decrease of 87%.
2. Regulatory Changes
Regulatory scrutiny is a significant risk for pharmaceutical companies. Changes in regulations can affect product approval processes, clinical trial protocols, and marketing strategies. As of September 30, 2024, the company has experienced delays in product approvals, impacting potential revenue streams.
3. Market Conditions
Market conditions, including economic downturns and changes in healthcare policies, can adversely affect the demand for Alnylam's products. The company's total revenues for the third quarter of 2024 were $500.919 million, a decline of 33% compared to $750.530 million in Q3 2023.
4. Operational Risks
Operational risks include challenges in the supply chain and production processes. The cost of goods sold has increased from $79.473 million in Q3 2023 to $81.980 million in Q3 2024. Disruptions in the supply chain can lead to delays in product delivery and increased costs.
5. Financial Risks
Financial risks include liquidity concerns, especially given the company's accumulated deficit of $7.203 billion as of September 30, 2024. Additionally, the company has a significant amount of convertible debt, totaling $1.024 billion, which could lead to dilution of existing shareholders if converted into equity.
6. Strategic Risks
The company’s strategic partnerships are crucial for its success. Any failure to maintain or expand these collaborations could result in decreased revenues. For example, revenues from collaborations have seen a notable decline, emphasizing the need for effective strategic management.
Mitigation Strategies
To address these risks, Alnylam has implemented several strategies:
- Investment in R&D to innovate and stay competitive.
- Diversifying its product pipeline to mitigate reliance on a few products.
- Strengthening relationships with regulatory bodies to ensure compliance and expedite approvals.
| Risk Factor | Description | Recent Financial Impact |
|---|---|---|
| Industry Competition | High competition from established and emerging firms. | Collaboration revenues dropped from $427.472 million to $57.387 million. |
| Regulatory Changes | Changes in regulations affecting product approvals. | Potential delays in product launches. |
| Market Conditions | Economic downturns affecting demand. | Total revenues decreased by 33% in Q3 2024. |
| Operational Risks | Supply chain disruptions impacting production. | Cost of goods sold increased to $81.980 million. |
| Financial Risks | Liquidity concerns due to accumulated deficit. | Accumulated deficit of $7.203 billion. |
| Strategic Risks | Failure to maintain partnerships could decrease revenues. | Significant decline in collaboration revenues. |
Future Growth Prospects for Alnylam Pharmaceuticals, Inc. (ALNY)
Future Growth Prospects for Alnylam Pharmaceuticals, Inc. (ALNY)
Product Innovations: Alnylam Pharmaceuticals has been focusing on expanding its product portfolio with innovative therapies. As of September 30, 2024, the company achieved global net product revenues for AMVUTTRA of $258.6 million for the third quarter, a significant increase driven by patient demand. The total net product revenues for the quarter reached $420.1 million, reflecting a growth of 34% compared to the same period in 2023.
Market Expansions: The company has successfully increased its market presence in various regions. For instance, net product revenues from ONPATTRO in the United States were $16.2 million in Q3 2024, while in Europe, revenues reached $24.3 million. The expansion into new markets is expected to further bolster revenue growth as more patients gain access to these therapies.
Collaborations and Partnerships: Alnylam has strategic collaborations with major pharmaceutical companies. The collaboration with Roche has a total transaction price of $922 million, which is expected to be recognized as services are performed over time. The partnership with Regeneron Pharmaceuticals has also shown potential, with cumulative revenues recognized of $272.1 million in the first nine months of 2024.
Future Revenue Growth Projections: Analysts project that Alnylam's revenues will continue to grow, driven by its expanding product pipeline and collaborations. For the nine months ended September 30, 2024, total revenues increased to $1.66 billion, a 19% increase from the previous year. The company's focus on RNAi therapeutics positions it well for sustained revenue growth in the coming years.
Strategic Initiatives: Alnylam's recent submission of a supplemental New Drug Application (sNDA) for vutrisiran demonstrates its commitment to expanding the indications for its therapies, which could lead to increased sales. The positive initial results from the Phase 1 study of mivelsiran in patients with Alzheimer’s disease also signify promising future developments.
Competitive Advantages: Alnylam holds a competitive edge through its proprietary RNAi technology, which has been successfully translated into multiple approved products. The company's robust pipeline, including both commercialized products and investigational therapies, positions it favorably against competitors in the biotechnology sector.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Product Revenues | $420.1 million | $313.2 million | 34% |
| AMVUTTRA Revenues | $258.6 million | $148.7 million | 74% |
| ONPATTRO Revenues | $50.3 million | $81.6 million | -38% |
| GIVLAARI Revenues | $71.0 million | $54.1 million | 31% |
| OXLUMO Revenues | $40.2 million | $28.7 million | 40% |
| Total Revenues | $1.66 billion | $1.39 billion | 19% |
Conclusion on Growth Opportunities: Alnylam Pharmaceuticals is strategically positioned for growth through product innovations, market expansions, and robust partnerships. The company's competitive advantages and future revenue projections indicate a strong potential for sustained financial performance.
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Article updated on 8 Nov 2024
Resources:
- Alnylam Pharmaceuticals, Inc. (ALNY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Alnylam Pharmaceuticals, Inc. (ALNY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Alnylam Pharmaceuticals, Inc. (ALNY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.