Get real. They have a currency already for acquisitions. It is called stock. The better buy something as they are so far from a drug they will need every penny.
by the way gokart, I completely disagree with you. Any company in RNA science knows that ALNY and ISIS are the two leaders in the industry. If anyone is in a position to evaluate potential winners in this space, it's Alnylam scientists. And Alnylam is aggressively working on their drug portfolio to become3 a full-fledged big pharma company, as is ISIS I believe. (I own both). the number of approved drugs has nothing to do with an acquisition. But I think if they were to make one, it would be geared toward a niche technology that they want to acquire, or possibly a phase 2 drug that they think would complement their own.
I have followed them for 10 years and their CEO is a a hypster in my opinion. It killed him to lose the law suit to Tekmira. They promised products forever and have zip to show for it. RNAi is impossible so far and these guys are not the wonders they think they are. But they finance every chance they get. Didn't Sanofi or someone just give them a pile of money? To me a dilute machine that over pays all the execs. GL
They can acquire a much smaller company for its technology, similar to what Bluebird did with Precision Genome Engineering. Or, as gswk says, it's just a smart thing to do to finance their P2 and P3 trials, notwithstanding that the announced price is now $7 higher than the price is now. Sets up for a short sale of the secondary or a re-pricing, unless the shares are already sold.
They can't make an acquisition for a very long time if at all possible. The company doesn't have a product yet and another company with a product wouldn't agree to a takeover. Alnylam can't buy a biotech company with products still in midstage trials because your bound to have a flop somewhere on any bad news. Then with all the extra stock the price would be in the toilet and could never come back up in price.
ALNY was found in 2002 and around 2004 or 2005 I already read they will have product on the market in 5 years. Beside they listed they cooperate with tone of other pharmaceutical companies to develop many drugs. Well until now 2015, no drug is on the market yet the only thing you see is tone of PR, the rising stock price and the executives exercised stock options with hundred million dollars.
Obviously to fund pipeline until products hit the market in 5 years. Better to issue the secondary before you really need the money.
I follow alny off and on for several years. The strange thing is this company never has any product just an idea RNA and stock price keeps going up and up thanks to PRs issued regularly by management.
They just said they have 450 Mil more than they need then they do another IPO of several million shares. Any one know why?
Another strange thing is even stock price is moving up but I only shorted this stock many times and made profit every single time.
it's actually a smart thing to do, to take advantage of the high stock price. ph III trials cost big $$$. the money will be put to good use with reasonably small dilution due to elevated share price. alny would not be the first company to do this. in a healthy market I've seen where the stock actually rallies after a few days of digesting the news as people come to understand that the company is in better position and got good deal. this market is on shaky ground - I hope it's carried out "before" the market tanks...