Alnylam Pharmaceuticals is Wednesday's pick for IBD 50 Stocks To Watch as the biotech stock works on a flat base. The stock is biding time with events including an Investor Day, upcoming earnings release and the outcome of the 2024 presidential election as potential stock price movers.
Alnylam develops RNA interference therapeutics for genetic, cardiovascular, metabolic and neurological diseases. RNA interference (RNAi) is a process inside your body that regulates how genes make new proteins. Proteins can sometimes cause or contribute to disease.
The company is hosting its Investor Day today where it is set to highlight the potential for market leadership in its treatment for ATTR amyloidosis with cardiomyopathy. The disorder is a rare but serious condition that occurs when the heart muscle stiffens and weakens due to a buildup of abnormal proteins.
Meanwhile, the company has a U.S. Food and Drug Administration approved RNAi therapeutic for its drug vutrisiran, under brand name Amvuttta, for the treatment of a neurological disease. On Wednesday, Alnylam announced a supplemental submission of its New Drug Application to the FDA for vutrisiran for ATTR amyloidosis with cardiomyopathy.
Drug prices may be affected based on the outcome of the election and could sway the stock's movement.
Alnylam Stock Awaits Next Move
Shares were nearly flat midday Wednesday. Alnylam has had giant bursts after the company's last two earnings reports. Shares are in a flat base with a 287.55 buy point, which is also the stock's record high reached on Aug. 29.
The stock has been testing its 50-day moving average. The stock retook its 21-day exponential moving average Tuesday, as it broke a four-day losing streak, according to MarketSurge chart analysis.
Additionally, Alnylam stock has a downtrend line from its peak to Tuesday's high. A break above Tuesday's peak would offer an early entry at 274.60. Its relative strength line has flattened out.
Biopharma Stock Shows Slowing Losses
Alnylam has posted mostly losing quarters as it plows capital back into research and development. The company reported a surprise second-quarter adjusted profit and higher sales than expected and raised its full-year 2024 net product revenue guidance on Aug. 1.
Its sales grew 107% in its latest quarter, following gains of 31% and 55% in the prior two quarters.
The company is expected to post quarterly losses in Q3 and Q4 and in 2025. Analysts forecast a third-quarter loss of 93 cents a share.
However, third-quarter revenue projections call for a 29% decrease this quarter, then increases of 27% and 11% the following quarters. Analysts expect the company will report its third-quarter results around Halloween.
Lastly, mutual funds own 74% of Alnylam stock, with 1,624 owning shares in September, up from 1,597 in June. Three high performing mutual funds in the IBD Mutual Fund Index own the stock, with Fidelity Contrafund (FCNTX) initiating a position in September, joining T. Rowe Price New Horizons Fund (PRNHX) and American Century Focused Dynamic Growth Fund (ACFSX).
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