Why Alnylam Pharmaceuticals fell
Alnylam Pharmaceuticals (ALNY) was one of the most underperforming biotech (biotechnology) stocks for the week ended June 10, 2016. It fell 10% due to profit booking. The stock touched $74 in the previous week. Alnylam recorded trading volumes of ~823,000 shares per day during the week compared to its three-month average trading volume of ~944,000 shares per day.
On the positive side, Alnylam Pharmaceuticals initiated its Phase 1 trial of ALN-TTRsc02 for the treatment of transthyretin. In a press release on June 9, 2016, Alnylam announced that “it has initiated a Phase 1 clinical trial with ALN-TTRsc02, a subcutaneously administered investigational RNAi therapeutic for the treatment of transthyretin ([or] TTR)-mediated amyloidosis (ATTR amyloidosis). The Phase 1 trial will be conducted in normal healthy volunteers.”
The press release went on to say, “Initiation of this trial is based on encouraging pre-clinical results, including data presented last year at the Oligonucleotide Therapeutics Society ([or] OTS) meeting held October 11 – 14, 2015. The Company has guided that it expects to report initial clinical data from this study in late 2016, and if positive, plans to initiate a Phase 3 study in 2017.”
Alnylam Pharmaceuticals closed at $63.17 and traded below its 20-day moving average last week. The stock has fallen by 32.9% on a year-to-date basis. Approximately 8.2% of Alnylam’s total outstanding shares are in short position. Alnylam has a book value of $13.91 per share.
At its current price, the stock is trading at a price-to-book value of 4.50x. Some of its mid-cap peers such as Jazz Pharmaceuticals (JAZZ), United Therapeutics (UTHR), and Acadia Pharmaceuticals (ACAD) are trading at price-to-book values of 5.70x, 2.90x, and 10.0x, respectively.
Analyst expectations and recommendations
Analysts’ consensus 12-month target estimate for Alnylam Pharmaceuticals is $120.50. Twelve analysts have recommended a “buy” for the stock, and two have recommended a “hold.” There were no “sell recommendations for the stock. Alnylam Pharmaceuticals has a weight of ~1.2% in the iShares Nasdaq Biotechnology (IBB).
Acadia Pharmaceuticals was the top performer in the mid-cap space last week, rising 9.8%. For more information, please read Why Acadia Stock Skyrocketed on Takeover Rumors.