Alnylam Pharmaceuticals' (ALNY) Q3 update was "clearly disappointing" as the company now expects full-year TTR revenue to land toward the bottom end of its $4.2 billion to $4.5 billion guidance range, RBC Capital Markets said in a report emailed Friday.
Amvuttra revenue was generally "in line" with expectations, but the quarter benefited from favorable inventory dynamics and a one-time gross-to-net adjustment. The firm pointed to uncertainty around proposed 340B reimbursement changes, which could create a headwind for hospital use of Amvuttra, according to the report.
RBC said the stock's reaction "feels overdone" and sees fundamental upside from continued Amvuttra execution, "pipeline progress" and a large untreated TTR-CM population. About 80% of US patients remain untreated, while the TTR franchise is up 59% from a year earlier, the report said.
RBC has an outperform rating on Alnylam Pharmaceuticals but lowered its price target to $280 from $345, with expectations that TTR revenue will come in near the low end of guidance, while still seeing "fundamental upside" from Amvuttra execution and pipeline progress.
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