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Do Alnylam Pharmaceuticals’ Cash Flows Look Healthy?

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Price performance

Since the beginning of 2018, the stock price of Alnylam Pharmaceuticals has dropped from $130 levels to $100 as of May 21. The stock had reached a high of $154 on March 20 and touched a low of $88.30 on May 3. Overall, Alnylam Pharmaceuticals has fallen 24%. In comparison, stock prices of peers Ionis Pharmaceuticals (IONS), Regeneron Pharmaceuticals (REGN), and Amgen (AMGN) have changed by -12.3%, 22.5%, and 0.06%, respectively, in the comparable period.

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Cash flows

Alnylam Pharmaceuticals spent $155.7 million in operating activities in Q1 2018 compared with $100.3 million in Q1 2018. This increase was mainly attributable to higher net loss and an increase in prepaid expenses and other assets of $27.5 million and collaboration receivables of $16.7 million, partially offset by deferred revenues of $27 million.

Alnylam Pharmaceuticals spent $134.8 million in investing activities in Q1 2018. In comparison, the company generated $75 million from investing activities in Q1 2017. Alnylam’s expenditures on the purchase of property, plant, and equipment decreased from $36.1 million in Q1 2017 to $21.2 million in Q1 2018. The decrease in cash from investing activities was mainly attributable to higher purchases of marketable securities, which rose from $86.8 million in Q1 2017 to $358.4 million in Q1 2018. This increase was partially offset by the sales and maturities of marketable securities, which rose from $198 million in Q1 2017 to $244.8 million in Q1 2018.

Alnylam Pharmaceuticals generated $41.5 million from financing activities in Q1 2018. In comparison, in Q1 2017, the company generated $2.7 million from financing activities. This increase was mainly attributable to higher proceeds from the exercise of stock options and other types of equity, which increased from $2.7 million in Q1 2017 to $42 million in Q1 2018, partially offset by payments of $572,000 for the repurchase of common stock for employee tax withholding.

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