Summary
Alnylam Pharmaceuticals, Inc. (ALNY) reported its financial results for the quarter and six months ended June 30, 2014. The company significantly increased its cash position, primarily driven by a substantial $700 million cash infusion from Genzyme as part of a strategic collaboration. This collaboration also involves Genzyme acquiring a significant equity stake in Alnylam. Financially, Alnylam continues to operate at a loss, with a net loss of $44.1 million for the quarter and $295.0 million for the six-month period, reflecting ongoing investments in research and development. A notable item impacting expenses was a substantial charge of $220.8 million recognized as in-process research and development related to the acquisition of Sirna Therapeutics' RNAi assets from Merck. Despite the net loss, the company's balance sheet strengthened considerably, ending the period with over $955 million in cash, cash equivalents, and marketable securities, providing ample runway for its development programs.
Financial Highlights
37 data points| R&D Expenses | $44.67M |
| Operating Expenses | $52.30M |
| Operating Income | -$45.01M |
| Net Income | -$44.07M |
| EPS (Basic) | $-0.58 |
| Shares Outstanding (Basic) | 75.83M |
Key Highlights
- 1Significant cash increase to $80.7 million in cash and cash equivalents and over $955 million in total cash, cash equivalents, and marketable securities by June 30, 2014, largely due to a $700 million collaboration payment from Genzyme.
- 2The company recognized a significant $220.8 million charge for in-process research and development related to the acquisition of Sirna Therapeutics' RNAi assets from Merck.
- 3Net revenues from collaborators decreased to $7.3 million for the quarter and $15.6 million for the six months, primarily due to the recognition of remaining deferred revenue from the terminated Cubist agreement.
- 4Research and development expenses more than doubled year-over-year for the six-month period, reaching $88.4 million, driven by advancements in clinical and pre-clinical programs, including increased clinical trial and manufacturing costs.
- 5General and administrative expenses increased substantially, particularly due to a one-time charge for the modification of certain stock options and increased consulting and professional services related to business development.
- 6Alnylam entered into a comprehensive global strategic collaboration with Genzyme for the development and commercialization of RNAi therapeutics as genetic medicines, including an equity investment by Genzyme.
- 7The company continues to advance its 'Alnylam 5x15' product strategy, with multiple programs in clinical and pre-clinical development, including patisiran (ALN-TTR02) in Phase 3 and ALN-AT3 (targeting antithrombin) in Phase 1.