Alnylam Earnings: Robust Uptake of Amvuttra Drives Sales; Pipeline Makes Progress

Narrow-moat Alnylam reported strong second-quarter results highlighted by net product revenue of $410 million, representing 34% year-over-year growth, driven by ATTR amyloidosis. Strong uptake of next-generation drug Amvuttra (for ATTR amyloidosis with polyneuropathy) is driving sales, accounting for $230 million of the quarter’s revenue. We forecast Alnylam will achieve total revenue of roughly $2.24 billion in 2023, representing about 23% growth. We are maintaining our fair value estimate of $223 per share, and although we have a positive outlook for the firm, we view shares as currently overvalued, trading in 2-star territory about 20% above our fair value estimate.