Alnylam Pharmaceuticals (ALNY): Assessing Valuation Following Positive HELIOS-B Data on Vutrisiran Efficacy

Alnylam Pharmaceuticals (ALNY) just shared new post hoc analyses from its HELIOS-B Phase 3 study at a major scientific meeting. The findings highlight positive results for its RNAi therapy, vutrisiran, in treating cardiomyopathy linked to amyloidosis and in preserving kidney function.

See our latest analysis for Alnylam Pharmaceuticals.

The recent HELIOS-B data presentation seems to have sparked fresh interest in Alnylam Pharmaceuticals, with the stock notching a 2.53% gain in its latest trading day and climbing 4.27% over the past week. Momentum is undeniably building, as the year-to-date share price return sits just above 97%, while the one-year total shareholder return leaps to an impressive 98%. Investors appear to be factoring in both the company’s clinical progress and the broader potential for its RNAi therapies.

If you’re following medical breakthroughs like this, it’s the perfect opportunity to discover See the full list for free.

Given this dramatic climb, is Alnylam’s valuation still attractive? Or have the promising clinical results and investor optimism already been fully reflected in the share price, leaving little room for upside ahead?

Most Popular Narrative: 4.1% Undervalued

With Alnylam’s narrative fair value sitting at $480.17, shares closed most recently at $460.54, just below the consensus target and implying modest upside. Here is the central catalyst according to the most widely followed narrative shaping market opinions right now.

The strong track record of rapid health system integration and scalable commercial execution, with SG&A and R&D investments offset by exceptional sales growth, points to the start of meaningful operational leverage, improving net margins as product revenues outpace fixed cost escalation.

Read the complete narrative.

What powers this price? Look under the hood to see the double-digit revenue growth forecasts, dramatically widening profit margins and some surprisingly high expectations for future earnings. The assumptions behind this number might just change how you view Alnylam’s potential.

Result: Fair Value of $480.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain because Alnylam’s reliance on a single franchise and potential pricing pressure from payers could challenge the bullish outlook.

Find out about the key risks to this Alnylam Pharmaceuticals narrative.

Another View: Multiples Suggest a Rich Valuation

While the fair value estimate paints Alnylam as undervalued, a different perspective suggests a more expensive scenario. The company's price-to-sales ratio stands at 19x, which is well above the US Biotechs industry average of 11x and its peer average of 9.1x. Even when compared to a fair ratio of 15.8x, Alnylam trades at a premium. This indicates the stock price may already reflect a significant amount of anticipated future success. Are investors taking on more valuation risk than they realize?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Alnylam Pharmaceuticals Narrative

If you see things differently or want to dig deeper, you can quickly put together your own take based on the numbers. Do it your way

A great starting point for your Alnylam Pharmaceuticals research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for More Investment Ideas?

Don’t limit your opportunities. Expand your search and stay ahead of the market by finding stocks with unique advantages across different themes right now.

• Spot untapped growth by tapping into these 3577 penny stocks with strong financials that combine robust financials with high return potential.
• Boost your portfolio’s future-focus by checking out these 26 AI penny stocks making waves in artificial intelligence and automation.
• Strengthen your passive income stream with these 18 dividend stocks with yields > 3% offering yields above 3% and long-term payout reliability.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com