Alnylam Pharmaceuticals (ALNY) Stock Pummeled After Suspending Revusiran Development
Shares of Alnylam Pharmaceuticals, Inc. (ALNY) were off more than $30 or 44% percent on Thursday’s premarket after news broke late yesterday that the company was suspending further development on Revusiran which treats a rare genetic condition. Alnylam Pharmaceuticals stock had closed at $70.30 per share in Wednesday’s regular trading session.
Stock AnalysisFounded in 2002, Alnylam Pharmaceuticals is a biopharmaceutical company specializing in RNAi or RNA interference technology.
The company has 18 potential treatments that are in various stages of development across three Strategic Therapeutic Areas: Cardio Metabolic disease, Genetic Medicine and Hepatic infectious disease.
Acting upon a recommendation from the ENDEAVOUR Phase III study Data Monitoring Committee or DMC, Alnylam decided to discontinue further development of revusiran, an RNA interference therapy for the treatment of a rare genetic disorder, hereditary ATTR amyloidosis with cardiomyopathy or hATTR-CM.
The decision to suspend development was made on the 4th of the month and released yesterday after the market close.
Revusiran was designed to target the gene involved in producing the abnormal protein that causes amyloidosis. The Phase III study was halted after patients in a previous study developed nerve pain or neuropathy, which unblended data “revealed an imbalance of mortality in the revusiran arm as compared to placebo”, which means that the mortality rate for patients under treatment was higher than those treated with a placebo.
John Maraganore, Ph.D., Chief Executive Officer of Alnylam stated in the company’s press release that, “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 this 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 so supportive of the revusiran program.”
Alnylam stated that the decision will not affect its lead product, patisiran, also in Phase III development for the treatment of amyloidosis with polyneuropathy, or any of the company’s other investigational RNAi therapy programs. Last month, the company halted development of an earlier stage RNAi compound after healthy volunteers developed elevated liver enzymes.
Alnylam shares have been hard hit in this morning’s premarket. Many analysts are reassessing the company’s prospects in light of the company losing one of its two Phase III treatments. The company still shows an EPS of -$4.24 and its shares will open well below its yearly low of $50 per share.
Other News About ALNYAlnylam Commemorates 10th Anniversary of the Nobel Prize in Physiology or Medicine Awarded for the Discovery of RNAi
Company celebrates Dr. Andrew Fire and Dr. Craig Mello for their discovery of RNA interference.
Alnylam CEO: Four Things To Learn From Medicine Development
CEO details the company’s development and its focus on RNAi.
Other Stocks in the NewsYou Should Be Accumulating McDonald’s on the Pullback
Although the stock is down over 10% from its 52-week highs, investors should consider adding the stock on the pullback for long-term growth.
Occidental Petroleum: Higher Profits Are Coming Soon
With a history of returning a majority of the invested capital to its stakeholders in form dividends and strategic share repurchases, investors should be pleased.