Alnylam Executing To Plan, But Catalysts Could Be Harder To Find In The Near Future

 

RNA interference (or RNAi) specialist Alnylam Pharmaceuticals (ALNY) has held up okay in what has been a tougher tape for biotech, with the shares down about 5% since my last update versus a 15% decline for the SPDR S&P Biotech ETF (XBI). Since that last article, Alnylam has posted a couple of good quarters, as well as some positive incremental data on significant clinical programs.

Alnylam is likely going to find itself in a “hurry up and wait” trading pattern for a few quarters, and that can be tough for the share price. Key data on the amyloidosis program won’t be coming until 2022, and early-stage updates on other clinical programs aren’t likely to move the shares all that much one direction or another.

I do believe, though, that these shares are more than 20% undervalued today, and there are numerous early-stage clinical programs that could drive substantially higher value as they mature (assuming clinical success, of course). There are risks here, including clinical trial failure and competitive drug development, but I believe Alnylam still ranks as a high-quality biotech idea.

 

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Alnylam Executing To Plan, But Catalysts Could Be Harder To Find In The Near Future