Summary
Alnylam Pharmaceuticals, Inc. reported its financial results for the quarter ended March 31, 2013. The company continues to operate at a loss, with a net loss of $9.0 million for the quarter, an improvement from $11.4 million in the same period last year. This improvement was largely driven by increased revenue from new and existing collaborations, particularly offset by a significant decrease in revenue from the Roche/Arrowhead alliance. The company successfully raised approximately $173.6 million in net proceeds from a public offering in January 2013, bolstering its cash position to $97.8 million.
Financial Highlights
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Financial Statements
Beta
| R&D Expenses | $22.18M |
| Operating Expenses | $28.45M |
| Operating Income | -$9.80M |
| Net Income | -$9.01M |
| EPS (Basic) | $-0.15 |
| Shares Outstanding (Basic) | 59.17M |
Key Highlights
- 1Net loss for the quarter was $9.0 million, compared to $11.4 million in the prior year's quarter, indicating a narrowing loss.
- 2Total net revenues from research collaborators decreased to $18.6 million from $20.6 million, primarily due to the completion of obligations under the Roche/Arrowhead alliance, partially offset by recognition of remaining deferred revenue from the termination of the Cubist agreement and new agreements with Monsanto and MDCO.
- 3The company successfully completed a public offering in January 2013, raising approximately $173.6 million in net proceeds, significantly strengthening its cash and cash equivalents balance to $97.8 million as of March 31, 2013.
- 4Research and development expenses increased by 5% to $22.2 million, driven by advancements in key programs like ALN-TTR02, ALN-TTRsc, and ALN-AT3.
- 5General and administrative expenses decreased significantly by 40% to $6.3 million, mainly due to a reduction in legal activities related to the settled Tekmira litigation.
- 6The company has $139.5 million in deferred revenue at March 31, 2013, representing payments received from collaborators for which services have not yet been performed.
- 7Alnylam continues to advance its core product strategy, focusing on five RNAi therapeutic programs, with ALN-TTR02 and ALN-TTRsc showing progress in clinical trials.
Frequently Asked Questions
As of March 31, 2013, Alnylam had $97.8 million in cash and cash equivalents and $400.8 million in total cash, cash equivalents, and fixed income marketable securities. The company believes these resources, combined with expected revenue from current alliances, will be sufficient to fund operations through at least the end of 2016. However, significant additional funds may be required earlier if development plans accelerate or face unforeseen challenges.
Total net revenues from research collaborators decreased to $18.6 million from $20.6 million year-over-year. This decline was primarily driven by the completion of obligations under the Roche/Arrowhead alliance. However, this was partially offset by the recognition of $9.7 million in remaining deferred revenue from the termination of the Cubist agreement and revenues from newer agreements with Monsanto and The Medicines Company (MDCO).
Alnylam is advancing its 'Alnylam 5x15' strategy, focusing on five core RNAi therapeutic programs. Progress was highlighted by the initiation of a Phase I clinical trial for ALN-TTRsc (subcutaneous delivery) and continued advancement of ALN-TTR02 in Phase II trials for transthyretin-mediated amyloidosis (ATTR). The company also filed an Investigational New Drug (IND) application for ALN-AT3 and expects to initiate a Phase I trial in 2013. A new global alliance with The Medicines Company (MDCO) was formed in February 2013 to advance the ALN-PCS program for hypercholesterolemia.
Alnylam is involved in ongoing litigation with the University of Utah concerning inventorship of patents related to RNAi technology. While the company believes it has strong defenses, litigation is inherently uncertain, costly, and can divert management attention. The company has not recorded an estimate of potential loss due to the uncertainties surrounding the outcome and amount of any possible loss.