Alnylam Stock: Undervalued, Heading Into A Catalyst-Rich Year

 

It’s been a more challenging market of late for the shares of Alnylam Pharmaceuticals (ALNY), a well-established specialist in RNA interference (or RNAI) technology. Between the unexpected resignation of a long-serving and well-regarded CEO and a rival’s clinical failure (which some investors believe speaks to risks in Alnylam’s pipeline), the shares are down about 28% since my last update, though truthfully that’s not so bad in the context of similar declines in the iShares Nasdaq Biotechnology ETF (IBB) and/or SPDR S&P Biotech ETF (XBI).

I believe Alnylam is coming up to multiple thesis-altering clinical readouts over the next twelve months, and today’s valuation does not seem to give adequate credit to the stock for the potential of these programs. Of course, where stocks (and biotech stocks in particular) are concerned, “potential” only gets so far, and investors need to see several of these read-outs go Alnylam’s way to unlock more value over the next 12 months.

 

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Alnylam Stock: Undervalued, Heading Into A Catalyst-Rich Year