Alnylam Pharmaceuticals stock (NASDAQ: ALNY) has recently surged by 60% in a week due to positive data from a late-stage clinical trial for its cardiovascular drug, Amvuttra. This drug is already approved by the U.S. FDA for polyneuropathy of hereditary transthyretin-mediated (hATTR) amyloidosis in adults and the recent trial focused on transthyretin amyloid cardiomyopathy (ATTR-CM). If approved for ATTR-CM, Amvuttra will compete with Pfizer’s Vyndaqel and Vyndamax, with peak sales expected to be between $3.5 billion and $4 billion by 2032. In addition, for patients already treated with Pfizer’s drug, Alnylam’s drug reduced deaths and hospitalizations by 28%.
Looking at ALNY stock performance over a slightly longer term, it has seen strong gains of 90% from early January 2021 to now. However, the increase in ALNY stock has been inconsistent, with returns of 30% in 2021, 40% in 2022, and -19% in 2023. In comparison, returns for the S&P 500 have been more stable, indicating that ALNY underperformed the index in 2023. However, the Trefis High Quality Portfolio, which includes 30 stocks, has consistently outperformed the S&P 500 each year over the same period.
Despite a recent surge, ALNY stock may have more room for growth, as it now trades at 15x trailing revenues compared to the 22x average over the last three years. Alnylam’s revenue has surged nearly 4x from $493 million in 2020 to $1.8 billion in 2023, with estimates to top $2.5 billion in 2025. With continued market share gains and regulatory approvals for Amvuttra and other drugs, Alnylam can look forward to strong sales growth in the coming years. The recent positive development around Amvuttra has resonated well with investors, leading to the significant rise in stock price.
In the uncertain macroeconomic environment with high oil prices and elevated interest rates, the question arises whether ALNY will underperform the S&P over the next 12 months or see a strong jump. However, considering its growth potential and valuation multiples aligning with forecasts, there may still be room for growth in ALNY stock. Investors can also assess how Alnylam’s Peers fare on important metrics to make informed decisions. Overall, the recent success of Amvuttra and the company’s strong sales growth prospects indicate a positive outlook for Alnylam Pharmaceuticals and its stock.
Investors can also explore other valuable comparisons for companies across industries at Peer Comparisons and consider investing with Trefis Market Beating Portfolios to maximize returns. Alnylam Pharmaceuticals’ recent success in the clinical trial for Amvuttra and its potential to compete in the cardiovascular drug market have positioned the company for continued growth and shareholder value creation in the future. As the pharmaceutical industry evolves, Alnylam’s innovative approach to RNA interference therapeutics for genetically defined diseases could solidify its position as a key player in the market.
