10-QPeriod: Q3 FY2022

ALNYLAM PHARMACEUTICALS, INC. Quarterly Report for Q3 Ended Sep 30, 2022

Filed October 27, 2022For Securities:ALNY

Summary

Alnylam Pharmaceuticals, Inc. reported strong year-over-year growth in net product revenues for the third quarter and first nine months of 2022, driven by increased patient uptake of its key products ONPATTRO, GIVLAARI, OXLUMO, and AMVUTTRA. Total revenues increased by 41% and 20% for the respective periods. However, the company also experienced a significant increase in its net loss, primarily due to a substantial loss on the extinguishment of debt, increased R&D and SG&A expenses, and a marked increase in the fair value of its development derivative liability. The company has successfully issued $1.04 billion in convertible senior notes to bolster its financial position. Despite the widening net loss, Alnylam believes its current cash and cash equivalents are sufficient to fund operations for at least the next 12 months, supported by ongoing product sales and alliance revenues.

Financial Statements
Beta

Key Highlights

  • 1Net product revenues increased by 39% year-over-year to $232.3 million for the three months ended September 30, 2022, and by 36% to $632.7 million for the nine months ended September 30, 2022.
  • 2Total revenues grew to $264.3 million for the third quarter of 2022, a 41% increase compared to the prior year period.
  • 3The company reported a net loss of $405.9 million for the third quarter of 2022, a significant increase from the $204.5 million net loss in the same period of 2021.
  • 4Alnylam issued $1.04 billion in aggregate principal amount of 1% Convertible Senior Notes due 2027, with proceeds intended for general corporate purposes.
  • 5A significant factor contributing to the increased net loss was a $76.6 million loss on the extinguishment of debt related to the repayment of its credit agreement.
  • 6Research and development expenses increased by 26% to $245.4 million for the third quarter, largely due to higher stock-based compensation and increased headcount for development studies.
  • 7Selling, general, and administrative expenses rose by 66% to $235.9 million for the third quarter, driven by increased stock-based compensation, headcount, and consulting expenses.

Frequently Asked Questions

Alnylam Pharmaceuticals reported a 41% increase in total revenues to $264.3 million for the three months ended September 30, 2022, compared to $187.6 million in the same period of 2021. This growth was primarily driven by a 39% increase in net product revenues, reaching $232.3 million.

The company reported a net loss of $405.9 million for the third quarter of 2022, a substantial increase from the $204.5 million net loss in the prior year's quarter. Key factors contributing to this widened loss include a significant loss on extinguishment of debt ($76.6 million), increased research and development expenses (up 26% to $245.4 million), higher selling, general, and administrative expenses (up 66% to $235.9 million), and an increase in the fair value of the development derivative liability.

In September 2022, Alnylam issued $1.04 billion in aggregate principal amount of 1% Convertible Senior Notes due 2027. The company also used approximately $762 million of the proceeds to repay borrowings under its credit agreement. This significant financing activity aims to strengthen the company's liquidity and financial position.

Net revenues from collaborations decreased by 47% to $64.3 million for the first nine months of 2022 compared to the same period in 2021, primarily due to reduced research and manufacturing activities with Regeneron. Royalty revenue from Leqvio was $2.7 million for the third quarter. The company expects collaboration and royalty revenues to decrease in 2022 compared to 2021 due to the timing of reimbursable activities with Regeneron.