Alnylam Earnings: Strong Demand for Amvuttra Drives Growth; Shares Undervalued

Narrow-moat Alnylam's robust first-quarter results represent a 32% increase year over year, highlighted by $365 million in net product revenue. Strong demand for its ATTR amyloidosis therapy was the primary driver of this growth. Strong uptake of next-generation drug Amvuttra (for ATTR amyloidosis with polyneuropathy) is driving sales, accounting for $195 million of the quarter’s revenue. We forecast Alnylam will achieve net product sales of roughly $1.4 billion in 2024, representing a 15% increase from 2023. We maintain our fair value estimate of $199 per share, and we view shares as undervalued, currently trading in 4-star territory about 25% below our fair value estimate.