01—Abstract
Summary
Summary of the 10-Q filed May 2, 2024. Cited figures are marked; the original filing is the authoritative source.
Alnylam Pharmaceuticals, Inc. reported a substantial increase in total revenues for the first quarter of 2024, driven by strong performance in both net product revenues and collaboration revenues.
Net product revenues saw a 32% increase year-over-year, primarily fueled by the robust growth of AMVUTTRA, alongside continued strength from GIVLAARI and OXLUMO. Collaboration revenues more than doubled, largely due to revenue recognized from the Roche collaboration, including a significant milestone payment related to the zilebesiran program, and increased activity with Regeneron. Despite the revenue growth, the company reported a net loss of $65.9 milliona, an improvement from the previous year's loss of $174.1 million, indicating progress in narrowing the operational loss.
Research and development expenses increased by 13%b, reflecting continued investment in pipeline advancement, particularly for zilebesiran and the HELIOS-B study. Selling, general, and administrative expenses also rose, driven by marketing investments and headcount growth. The company's liquidity remains strong, with cash, cash equivalents, and marketable securities sufficient for at least the next 12 months, according to management.
02—Key points
Key Highlights
- Total revenues surged by 55% to $494.3 million in Q1 2024 compared to Q1 2023, driven by strong product sales and significant collaboration revenue.
- Net product revenues grew by 32% to $365.2 million, with AMVUTTRA showing 92% year-over-year growth, while ONPATTRO saw a decline.
- Net revenues from collaborations increased by 225% to $118.5 million, primarily due to a $65 million milestone payment from Roche for the zilebesiran program and increased activity with Regeneron.
- Royalty revenue also increased by 63% to $10.6 million, primarily from Leqvio sales.
- The net loss improved to $65.9 million ($0.52 per share) in Q1 2024, a significant reduction from $174.1 million ($1.40 per share) in Q1 2023.
- Research and Development (R&D) expenses increased by 13% to $261 million, reflecting ongoing investment in clinical studies like zilebesiran and HELIOS-B.
- Selling, General, and Administrative (SG&A) expenses increased by 15% to $210.8 million, driven by marketing investments and increased headcount.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2024, Alnylam Pharmaceuticals, Inc. lost $0.13.
- Revenue$494.3M100.0%
- Cost of revenue−$54.6M11.0%
- Gross profit$439.7M89.0%
- Operating costs−$483.2M97.7%
- Operating income−$43.4M8.8%
- Interest, other & tax−$22.5M4.6%
- Net income−$65.9M13.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 2, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $494.33M$319.29M | +54.8% |
| Cost of Revenue | $54.61M$41.43M | +31.8% |
| Gross Profit | $439.72M$277.86M | +58.3% |
| R&D Expenses | $261.00M$230.57M | +13.2% |
| SG&A Expenses | $210.80M$183.66M | +14.8% |
| Operating Expenses | $537.77M$469.10M | +14.6% |
| Operating Income | -$43.44M-$149.81M | +71.0% |
| Interest Expense | $35.25M$28.95M | +21.8% |
| Net Income | -$65.94M-$174.10M | +62.1% |
| EPS (Basic) | $-0.52$-1.40 | +62.9% |
| EPS (Diluted) | $-0.52$-1.40 | +62.9% |
| Shares Outstanding (Basic) | 126.14M124.11M | +1.6% |
| Shares Outstanding (Diluted) | 126.14M124.11M | +1.6% |
05—Questions
Frequently Asked Questions
How did Alnylam's revenue performance change in the first quarter of 2024 compared to the previous year?
Alnylam Pharmaceuticals experienced a significant 55% increase in total revenues, reaching $494.3 million in the first quarter of 2024, up from $319.3 million in the same period of 2023. This growth was driven by a 32% rise in net product revenues, largely from AMVUTTRA, and a substantial 225% increase in net revenues from collaborations, notably from the Roche milestone payment and increased Regeneron activity.
What is the current financial position of Alnylam, particularly regarding profitability and cash reserves?
Alnylam reported an improved net loss of $65.9 million in Q1 2024, compared to $174.1 million in Q1 2023, demonstrating progress in narrowing its losses. The company maintains a strong liquidity position, with cash, cash equivalents, and marketable securities totaling $2.37 billion as of March 31, 2024, which management believes is sufficient to cover operating needs for at least the next 12 months.
What are the key drivers behind the increased R&D and SG&A expenses?
The 13% increase in R&D expenses was primarily driven by continued investment in clinical studies, particularly for zilebesiran (KARDIA-2 and KARDIA-3) and the HELIOS-B study, as well as increased preclinical activities and higher compensation costs due to increased headcount. The 15% rise in SG&A expenses was due to increased marketing investments for TTR therapies and expansion of the global infrastructure, including headcount growth.
How are the collaborations with Roche and Regeneron impacting Alnylam's financial results?
The collaboration with Roche significantly boosted Alnylam's revenue in Q1 2024, contributing $74.7 million, which included a $65 million milestone payment related to the KARDIA-3 study for zilebesiran. The Regeneron collaboration also saw increased revenue recognition, up 34% year-over-year, due to higher activity levels in research services and licensed programs.
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