Alnylam PharmaceuticalsALNY reported third-quarter 2026 adjusted earnings of $16.26 per share, beating the Zacks Consensus Estimate of $2.19. The substantial earnings beat was primarily driven by a noncash income tax benefit of approximately $1.9 billion, stemming from the release of valuation allowances on certain U.S. deferred tax assets. The company had reported adjusted earnings of $3.19 per share in the year-ago quarter.
Third-quarter revenues rose 17% to $1.46 billion, beating the Zacks Consensus Estimate of $1.45 billion. Amvuttra drove growth as product revenues climbed 52% to $1.29 billion.
ALNY's shares fell 25.1% despite the earnings and revenue beats, likely reflecting concerns over the slower-than-anticipated growth in Amvuttra patient demand and management's expectation that combined Amvuttra and Onpattro sales will finish 2026 near the low end of guidance. Slower-than-expected conversion of physician engagement into new patient starts further weighed on investor sentiment.
ALNY's Q3 Results in Detail
Amvuttra is approved for polyneuropathy associated with hereditary transthyretin amyloidosis and for cardiomyopathy associated with transthyretin amyloidosis (ATTR-CM). Its cardiomyopathy launch has been the main driver of Alnylam's recent product revenue growth.
Amvuttra generated $1.13 billion in sales, up 65% year over year, but missed the Zacks Consensus Estimate of $1.15 billion. The sales miss likely contributed to the sharp decline in ALNY's shares despite the company's better-than-expected quarterly results. Higher demand, mainly among U.S. ATTR-CM patients, supported growth. Sequential U.S. revenues from Amvuttra and Onpattro benefited from a $17 million inventory build and approximately $10 million in favorable gross-to-net adjustments, alongside an $81 million increase in demand.
Onpattro revenues fell 50% to $19.6 million, missing the $22.27 million consensus estimate, reflecting fewer treated patients. Givlaari sales rose 21% to $89.5 million on growth in patients receiving treatment, beating the $87.10 million estimate.
Oxlumo sales slipped 1% to $52.5 million and missed the Zacks Consensus Estimate of $55.69 million.
Year to date, Alnylam's shares have plunged 56.2% against the industry's 7.3% growth.
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Alnylam's Other Revenues Show Mixed Trends
Collaboration revenues plunged 80% year over year to $71.5 million. RocheRHHBY contributed $39.1 million, down 88%, as the year-earlier period included a $300 million milestone tied to the first patient dosed in the phase III ZENITH study of zilebesiran.
ALNY and RHHBY are developing zilebesiran for uncontrolled hypertension. Meanwhile, revenues from RegeneronREGN rose 43% to $32.3 million. ALNY and REGN are also collaborating on brezosiran for Huntington's disease, with a pivotal study planned for 2027, pending regulatory alignment.
Regeneron is advancing cemdisiran to treat adult patients with generalized myasthenia gravis who are anti-acetylcholine receptor antibody-positive. An FDA decision on the candidate is expected in November 2026. Subject to approval, Alnylam is eligible to receive tiered, double-digit royalties of up to 15% on global net sales of cemdisiran. Royalties climbed 105% to $94.7 million, driven by rising global sales of Leqvio by NovartisNVS and higher royalty rates. NVS markets Leqvio for cholesterol management. As of September 2026, Leqvio is registered in 109 countries worldwide and is commercially available in 89 countries.
ALNY's Operating Expenses Rise
Cost of goods sold surged 83% to $361.8 million. Product gross margin narrowed five percentage points to 72%, largely due to increased Amvuttra sales and a higher blended royalty rate payable on the drug.
Adjusted research and development (R&D) expenses rose 21% to $375.7 million, reflecting increased spending on the ZENITH study and the phase III TRITON-CM and TRITON-PN studies of nucresiran, alongside preclinical programs.
Adjusted selling, general and administrative (SG&A) expenses increased 13% to $295.7 million due to investments supporting Amvuttra's global ATTR-CM launch. Adjusted operating income fell 11% to $424.9 million, partly reflecting lower collaboration revenues.
Alnylam Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Alnylam Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Alnylam Pharmaceuticals, Inc. Quote
Alnylam Reaffirms Its 2026 Sales Outlook
Alnylam maintained its 2026 total net product revenue outlook of $4.7-$5.1 billion. The company reiterated combined Amvuttra and Onpattro sales guidance of $4.2-$4.5 billion and Givlaari and Oxlumo guidance of $500-$600 million.
Management also reaffirmed its collaboration and royalty revenue outlook of $575-$625 million and combined adjusted R&D and SG&A expense guidance of $2.7-$2.8 billion.
The company expects fourth-quarter U.S. sales to face inventory and pricing headwinds. Potential hospital ordering disruptions surrounding proposed 340B reimbursement changes and more restrictive Medicare Advantage access requirements could further constrain demand. Alnylam plans to provide 2027 product revenue guidance with its February 2027 results, rather than in January.
Our Take on ALNY's Q3 Performance
Alnylam's exceptional earnings beat contrasts with softer underlying operating trends. A roughly $1.9 billion noncash tax benefit from releasing valuation allowances boosted net income, while adjusted operating income declined year over year. Amvuttra's consensus miss matters more to investors than the headline earnings surprise because its adoption underpins the company's commercial growth ambitions.
The expanded sales force is reaching more physicians, but management acknowledged that engagement is taking longer than expected to translate into patient starts. Although broader prescribing and the development pipeline offer long-term opportunities, near-term execution and reimbursement uncertainties may keep investor sentiment cautious despite strong year-over-year product sales growth.
ALNY's Zacks Rank
Alnylam currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
