In the second quarter of 2008, revenue for Alnylam Pharmaceuticals, Inc. (ALNY) came in at $23.8 million, an 161% increase year-over-year, but less than our estimate of $33 million. The significant increase in revenues in the second quarter of 2008 was primarily related to $13.4 million of net collaboration revenues related to the company's alliance with Roche.
Revenues for the second quarter of 2008 also included $10.4 million of expense reimbursement and amortization revenues from Novartis AG (NVS), Takeda Pharmaceutical Company Limited, the National Institutes of Health (NIH), the Department of Defense (DOD), Biogen Idec, InterfeRx, research reagent and services licensees and other sources.
The company also announced a development and commercialization deal for ALN-RSV01 (currently in a second phase II trial) in Asia with Kyowa Hakko in June. We maintain our Hold rating on the shares of Alnylam with a price target of $38.5.
We believe the company will continue to form major new alliances with leading pharmaceutical and biotech companies in the coming quarters or years. As a result, we continue to expect revenue variations quarter by quarter in the foreseeable future as collaboration is the major source of the company s total revenue.
We are comfortable with the company's current cash position, which relieves us from the concern about its cash burn rate. We think the financial results had only limited impact on the company's share price as investors are more focused on new major alliance establishment and the company's pipeline advancement.
Read the full analyst report on ALNY
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