Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY)
Alnylam Pharmaceuticals is having an incredibly rough day in the market today, and for good reason. The company has made the decision to discontinue development on a key product. As a result, we’re seeing strong declines on the value of the stock. Today, we’ll talk about the discontinuation, how the stock reacted to the news, and what we can expect to see from ALNY moving forward. So, let’s get right to it…
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ALNY Falls Hard On Study Discontinuation
For some time now, Alnylam Pharmaceuticals has been working on the development of a treatment known as revusiran. The investigation RNA interference therapeutic was developed to treat hereditary ATTR amyloidosis with cardiomyopathy. Unfortunately, however, the company announced early today that it would be discontinuing the study.
During after-hours yesterday, ALNY made a key announcement. In the announcement the company said that it had received a recommendation from the Phase 3 study Data Monitoring Committee. Unfortunately, that recommendation was to suspend dosing in the study. As a result of this recommendation, the company made the decision to discontinue the development of revusiran.
During the announcement that ALNY would be discontinuing development, John Maraganore, Ph.D., the company’s CEO, had the following to offer:
“Patient safety comes first. We have stopped all dosing and are actively monitoring patients across revusiran studies to ensure their safety. We will also continue to evaluate ENDEAVOUR data to understand the potential cause of these findings… While the outcome is disappointing given the lack of available treatment options for patients suffering from this devastating disease, we remain committed to serving the needs of the ATTR amyloidosis community. We would like to thank patients, caregivers, investigators, and study staff who have been supportive of the revusiran program.”
How The Stock Reacted To The News
At the end of the day, the news moves the market. In general, positive news will lead to gains. However, in this case, the news was far from positive. Unfortunately, Alnylam Pharmaceuticals invested quite a bit into what is now an ended program. As a result, investors are making the company pay. Currently (11:25), ALNY is trading at $38.10 per share after a loss of $32.20 per share (45.81%) thus far today.
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What We Can Expect To See Moving Forward
While I would love to say that I’m expecting to see gains out of Alnylam Pharmaceuticals ahead, that simply wouldn’t be the truth. At the end of the day, my opinion is relatively bearish. Unfortunately, the company had to end the ENDEAVOUR trial due to complications with patient safety. This was the closest thing that they had to approval. While there is a relatively strong pipeline, ALNY has quite a while before anything else in the pipeline gets anywhere near marketability. With no approved products and likely a long delay before the possibility of approval even comes up again, I’m expecting to see further declines in the value of the stock.
What Do You Think?
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