10-QPeriod: Q2 FY2019

ALNYLAM PHARMACEUTICALS, INC. Quarterly Report for Q2 Ended Jun 30, 2019

Filed August 6, 2019For Securities:ALNY

Summary

This Alnylam Pharmaceuticals 10-Q filing for the period ending June 30, 2019, highlights significant progress in commercializing ONPATTRO and advancing its pipeline, alongside substantial ongoing investment in research and development. The company reported a 50% increase in total revenues year-over-year, primarily driven by the launch of ONPATTRO, which generated $38.2 million in the second quarter and $64.5 million in the first half of the year. Despite this revenue growth, Alnylam continues to incur significant operating losses, with a net loss of $219.5 million for the quarter and $401.4 million for the first half, reflecting its heavy investment in R&D to support its "Alnylam 2020" strategy. A key development highlighted is the strong financial footing provided by a $400 million upfront payment and equity investment from Regeneron in May 2019, supplementing a $381.9 million net proceeds from a public offering in January 2019. These capital infusions, combined with existing cash reserves, are expected to fund operations for multiple years. The company is advancing several late-stage investigational programs, including givosiran for acute hepatic porphyria (AHP), which has received Priority Review from the FDA with a PDUFA date set for February 4, 2020. Investors should note the continued substantial R&D spending, the reliance on strategic partnerships, and the inherent risks associated with drug development and commercialization, as emphasized in the risk factors section.

Financial Statements
Beta

Key Highlights

  • 1ONPATTRO generated $38.2 million in net product revenues in Q2 2019 and $64.5 million in the first half of 2019, indicating successful commercialization post-2018 launch.
  • 2Givosiran, a key pipeline asset for AHP, received Priority Review from the FDA with a PDUFA action date of February 4, 2020, signaling potential near-term approval.
  • 3The company bolstered its cash position significantly through a $400 million upfront payment from Regeneron and a $381.9 million public offering in January 2019.
  • 4Total revenues increased by 50% year-over-year to $44.7 million in Q2 2019 and $78.0 million in the first half, largely due to ONPATTRO sales.
  • 5Research and development expenses increased by 19% in Q2 2019 to $163.9 million, reflecting continued investment in pipeline advancement, including license fees related to the Regeneron collaboration.
  • 6Selling, general, and administrative expenses rose by 33% in Q2 2019 to $112.8 million, driven by commercialization efforts for ONPATTRO and expansion of global operations.
  • 7Despite revenue growth, the company incurred substantial net losses ($219.5 million in Q2, $401.4 million YTD), consistent with its strategy of heavy R&D investment.

Frequently Asked Questions

In the second quarter of 2019, ONPATTRO generated $38.2 million in net product revenues, and $64.5 million in the first six months of 2019. The company expects these revenues to continue increasing due to a full year of sales and launches in additional geographies.

Alnylam has reported positive results from the ENVISION Phase 3 study for givosiran, targeting acute hepatic porphyria (AHP). The company submitted a New Drug Application (NDA) to the FDA, which has been accepted and granted Priority Review with a PDUFA action date of February 4, 2020. A Marketing Authorisation Application (MAA) has also been filed and validated by the European Medicines Agency (EMA).

The company significantly improved its liquidity through a $381.9 million net proceeds from a public offering in January 2019. Additionally, the strategic collaboration with Regeneron, which closed in May 2019, provided a $400 million upfront payment and a $400 million investment in common stock. These events have substantially increased cash reserves, with $1.14 billion in cash and equivalents at the end of the period.

Operating costs and expenses increased due to higher Research and Development (R&D) expenses, driven by increased license fees (related to the Regeneron collaboration), clinical trial costs, external services, and compensation to support pipeline advancement. Selling, General, and Administrative (SG&A) expenses also rose due to expanded commercial operations for ONPATTRO and preparations for potential future product launches.