10-QPeriod: Q2 FY2022

ALNYLAM PHARMACEUTICALS, INC. Quarterly Report for Q2 Ended Jun 30, 2022

Filed July 28, 2022For Securities:ALNY

Summary

Alnylam Pharmaceuticals, Inc. reported total revenues of $224.8 million for the second quarter of 2022, a modest 2% increase year-over-year. This growth was primarily driven by a strong 33% increase in Net Product Revenues to $213.5 million, largely from ONPATTRO and GIVLAARI, partially offset by a significant decline in collaboration revenues, notably from Regeneron. The company's Net Loss widened by 46% to $277.4 million for the quarter, reflecting increased operating costs and expenses, particularly in research and development and selling, general, and administrative functions. Despite the widening net loss, the company maintains a substantial cash position and believes it has sufficient liquidity for the next 12 months, supported by ongoing product sales and collaborations. Investors should note the significant decrease in collaboration revenue and the increased operational expenses, while also monitoring the continued growth in product sales and the pipeline's advancement.

Financial Highlights

49 data points
Beta

Revenue

$224.82M

84.9% Gross Margin

Net Income

-$277.40M

-123.4% Net Margin

EPS (Diluted)

$-2.29

Total Assets

$3.33B

Cash & Equivalents

$575.56M

Free Cash Flow

-$138.87M

Financial Statements
Beta
Revenue$224.82M
Cost of Revenue$34.04M
Gross Profit$190.78M
R&D Expenses$205.71M
SG&A Expenses$169.98M
Operating Expenses$416.50M
Operating Income-$191.69M
Interest Expense$42.61M
Net Income-$277.40M
EPS (Basic)$-2.29
EPS (Diluted)$-2.29
Shares Outstanding (Basic)120.90M
Shares Outstanding (Diluted)120.90M

Key Highlights

  • 1Total revenues increased by 2% to $224.8 million in Q2 2022, compared to $220.6 million in Q2 2021.
  • 2Net product revenues surged by 33% to $213.5 million in Q2 2022, driven by strong performance of ONPATTRO and GIVLAARI.
  • 3Net loss widened by 46% to $277.4 million in Q2 2022, from $189.6 million in Q2 2021.
  • 4Research and development expenses increased by 13% to $205.7 million in Q2 2022.
  • 5Selling, general, and administrative expenses increased by 17% to $170.0 million in Q2 2022.
  • 6Net cash used in operating activities was $294.0 million for the first six months of 2022, an improvement from $357.5 million in the same period of 2021.
  • 7The company reported $577.7 million in cash, cash equivalents, and restricted cash as of June 30, 2022.

Frequently Asked Questions

Alnylam Pharmaceuticals reported a 2% increase in total revenues to $224.8 million for the second quarter of 2022. However, net loss widened significantly by 46% to $277.4 million, primarily due to increased operating expenses, particularly in research and development and selling, general, and administrative functions.

The primary driver of revenue growth was a substantial 33% increase in Net Product Revenues to $213.5 million, fueled by strong sales of ONPATTRO and GIVLAARI. This growth was partially offset by a significant decrease in collaboration revenues, mainly from the Regeneron collaboration.

As of June 30, 2022, Alnylam Pharmaceuticals had $577.7 million in cash, cash equivalents, and restricted cash. The company believes this liquidity, along with expected cash from product sales and collaborations, is sufficient to support its operations for at least the next 12 months.

Key concerns for investors include the widening net loss, the significant increase in operating expenses (R&D and SG&A), and the substantial decrease in collaboration revenues. While product sales are growing, the increased costs and reduced collaboration income are impacting overall profitability.