Alnylam Out-Licenses A Less-Promising Program

Biotech has held up surprisingly well in this market downturn, more or less tracking the S&P, but Alnylam (ALNY) has managed to outperform on a relative basis – showing only a small year-to-date decline. I’d like to believe that’s a recognition of the company’s strong pipeline, as well as the fact that it really doesn’t need near-term financing, but there’s always guesswork in interpreting near-term moves like that.

I continue to believe that Alnylam shares are undervalued, and that management is running the company with a sound business plan. The latest example is the company’s decision to out-license ALN-AAT02 for alpha-1 antitrypsin deficiency; a move that cuts the company’s R&D spending needs for a less-promising program while still maintaining some upside based on the work done to date.

While 2020 isn’t the most catalyst-rich year for this company, Alnylam investors should nevertheless see FDA approvals for two more compounds (inclisiran, licensed to Novartis (NVS), and wholly-owned lumasiran), allowing the company to enter 2021 with four approved drugs and key data on the way from its TTR amyloidosis program.

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Alnylam Out-Licenses A Less-Promising Program