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How Has Alnylam Pharmaceuticals Performed Financially?

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Alnylam Pharmaceuticals (ALNY) generated collaboration revenues of $21.9 million in Q1 2018 compared with $18.9 million in Q1 2017. The company earns the majority of its collaboration revenues from Sanofi Genzyme and MDCO. Revenues from Sanofi Genzyme rose from $12.3 million in Q1 2017 to $18.9 million in Q1 2018. Alnylam’s collaboration revenues from MDCO decreased from $6.4 million in Q1 2017 to $1.3 million in Q1 2018. The increase in collaboration revenues in the first quarter was attributable to a $50 million milestone payment upon dosing of the first patient in the ATLAS phase three program for fitusiran.

Alnylam expects collaboration revenues to decrease in the second half of 2018 as compared to the corresponding period last year due to the expected completion in mid-2018 of the transition of fitusiran program to Sanofi Genzyme.

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Operating expenses

Alnylam Pharmaceuticals incurred research and development expenses of $96.9 million in Q1 2018 compared with $87.0 million in Q1 2017. This increase was attributable to higher compensation and related expenses in Q1 2018 as a result of increased preclinical services related to early-stage programs for supporting the company’s 2020 business strategy and higher expenses for regulatory submissions.

The general and administrative expenses incurred by the company increased from $38.5 million in Q1 2017 to $72.5 million in Q1 2018. This increase was attributable to an increase in the commercial and medical affairs headcount and activities in preparation for the potential launch of patisiran in 2018 and potential product launches in 2019 and thereafter.

With anticipated product launches, Alnylam expects general and administrative expenses to increase on a quarterly basis during the remainder of 2018.

The total operating expenses of the company increased from $125.5 million in Q1 2017 to $169.3 million in Q1 2018. Consequently, the operating loss of Alnylam Pharmaceuticals widened from $106.5 million in Q1 2017 to $147.40 million in Q1 2018.

In the next part of the series, we’ll take a look at the equity offerings and valuation metrics of Alnylam Pharmaceuticals.

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