Alnylam Has Had Its Share Of Recent Pipeline Setbacks; Barclays Cuts PT To $50

Given the discontinuation of the Revusiran program on Wednesday, delays in the ATT program and additional work required for the complement program, Barclays’ Geoff Meacham noted that Alnylam Pharmaceuticals, Inc. ALNY has seen several recent pipeline setbacks.

Meacham downgraded the rating on the company from Overweight to Equal-Weight, while lowering the price target from $85 to $50.

Patisiran Program Still Viable

The analyst mentioned, however, that he was still “very comfortable with the Patisiran program and its probability of success as well as the hemophilia program, both of which should anchor valuation.”

Although the specifics are still under review, the Revusiran program was discontinued due to an imbalance in mortality in the ENDEAVOUR trial. The DMC ruled that the risk/benefit no longer supported dosing.

Safety Uncertainty

“While we still have conviction in the risk/benefit profile of Patisiran in hATTR-PN patients ahead of the mid-2017 readout, we view other SMid cap biotech names as more attractive over the next 12 months,” Meacham stated.

In addition, the analyst pointed out that apart from the uncertainty regarding its safety, there were no broader concerns regarding the RNAi technology platform. In fact, Revusiran “uniquely employed” first generation GalNAc delivery technology, with more than 800 patients being dosed safely using other delivery technologies.

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