10-QPeriod: Q1 FY2015

ALNYLAM PHARMACEUTICALS, INC. Quarterly Report for Q1 Ended Mar 31, 2015

Filed May 8, 2015For Securities:ALNY

Summary

Alnylam Pharmaceuticals, Inc. reported its first quarter 2015 financial results, showcasing significant progress in its cash position due to a successful public offering. The company raised approximately $496.4 million in net proceeds from the offering in January 2015, bolstering its cash and cash equivalents to $306.6 million as of March 31, 2015. This strong liquidity provides substantial runway to fund its ambitious "Alnylam 2020" plan, which aims for three marketed products and ten clinical programs by 2020. Operationally, Alnylam reported increased net revenues from collaborators to $18.5 million, up from $8.3 million in the prior year's quarter, driven by contributions from Monsanto, Takeda, and Genzyme. While research and development expenses rose to $58.0 million, reflecting pipeline advancement, the overall operating expenses decreased significantly year-over-year due to the absence of a large in-process R&D charge recorded in the prior year's quarter. The company continues to advance its diverse pipeline of RNAi therapeutics across its Genetic Medicine, Cardio-Metabolic Disease, and Hepatic Infectious Disease therapeutic areas.

Financial Highlights

37 data points
Beta

Net Income

-$50.78M

EPS (Diluted)

$-0.62

Total Assets

$1.63B

Cash & Equivalents

$306.58M

Free Cash Flow

-$28.36M

Financial Statements
Beta
R&D Expenses$58.03M
Operating Expenses$70.76M
Operating Income-$52.22M
Net Income-$50.78M
EPS (Basic)$-0.62
Shares Outstanding (Basic)82.07M

Key Highlights

  • 1Successfully raised approximately $496.4 million in net proceeds from a public stock offering in January 2015, significantly strengthening the company's cash reserves.
  • 2Cash and cash equivalents increased to $306.6 million as of March 31, 2015, providing substantial financial flexibility for future operations and R&D.
  • 3Net revenues from collaborators grew to $18.5 million for the three months ended March 31, 2015, compared to $8.3 million in the same period last year.
  • 4Research and development expenses increased by 33% to $58.0 million, indicating continued investment in pipeline advancement.
  • 5Overall operating expenses decreased significantly by 74% year-over-year, primarily due to the absence of a large in-process R&D charge recognized in Q1 2014 related to the Sirna acquisition.
  • 6The company reiterated its "Alnylam 2020" guidance, projecting three marketed products and ten clinical programs by the end of 2020.
  • 7Advanced key clinical programs, including patisiran in Phase 3 for ATTR amyloidosis and ALN-AT3 for hemophilia, reporting positive early-stage data.

Frequently Asked Questions

The primary driver was the successful underwritten public offering in January 2015, which generated approximately $496.4 million in net proceeds. This, combined with strategic private placements with Genzyme, significantly boosted the company's liquidity.

Alnylam saw a substantial increase in net revenues from collaborators, growing to $18.5 million from $8.3 million in the prior year's quarter. This growth was attributed to recognized revenue from agreements with Monsanto, Takeda, and Genzyme, as well as services performed under other collaborator agreements.

Alnylam expects to continue incurring significant operating losses for the foreseeable future due to substantial investments in research and development to advance its RNAi therapeutic pipeline. While revenues from collaborations are expected to contribute, profitability is not anticipated in the near term. The company's strong cash position from the recent offering is expected to fund its operations and R&D initiatives through its 'Alnylam 2020' goals.

Yes, Alnylam is involved in litigation with the University of Utah regarding inventorship of certain patents. While the sole inventorship claims were dismissed, joint inventorship and state law damages claims remain. The company filed for summary judgment and expects a ruling in the third quarter of 2015. Alnylam believes it has meritorious defenses but acknowledges the inherent uncertainties and potential costs associated with litigation.