Alnylam Pharmaceuticals, Inc. (ALNY) announced the pricing of its underwritten public offering of common stock worth $450 million. The company is looking to issue approximately 4.74 million shares of its common stock at a price of $95 per share. The offering is expected to close on or about Jan 26, 2015.
The company intends to use the net proceeds from this offering for general corporate purposes which include research and development expenses, clinical trial costs, potential acquisition of new businesses and technologies.
In addition to this, the company plans to achieve its “Alnylam 2020” profile with 3 drugs on the market and 10 RNAi therapeutic clinical programs, including 4 in late stages of development, across three strategic therapeutic areas (STArs) – genetic medicines, cardio-metabolic disease and hepatic infectious disease – by the end of 2020.
We note that earlier in the month, Alnylam increased its cash guidance for 2014 to approximately $880 million (old guidance: more than $860 million). Moreover, the company expects to exceed its “Alnylam 5×15” pipeline guidance (introduced in Jan 2011) – 8 programs are in clinical development, including 2 in phase III, with 5 having achieved human proof-of-concept results.
Presently, the two most advanced candidates at Alnylam are patisiran (familial amyloidotic polyneuropathy) and revusiran (familial amyloidotic cardiomyopathy). Both are currently in phase III studies. Apart from these two, Alnylam has several early- and mid-stage candidates in its pipeline.
With data read-outs expected in the coming months and through 2015, we expect investor focus to remain on pipeline updates from the company.
Alnylam carries a Zacks Rank #2 (Buy). Some better-ranked stocks in the health care sector include Alexion Pharmaceuticals, Inc. (ALXN), Amgen Inc. (AMGN) and Celgene Corporation (CELG). All three carry a Zacks Rank #1 (Strong Buy).
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