Alnylam Pharmaceuticals Inc. (ALNY) provided pricing and other details regarding its recently announced public offering of shares of its common stock. Alnylam is offering 8 million shares of its common stock at a price of $20.13 per share.
The underwriters are expected to have a 30-day option to purchase an additional 15% of the shares (1.2 million) sold to cover over-allotments, if any. The offering is expected to close on or about Jan 22, 2013.
The company expects to exit 2012 with a cash balance of around $225 million. We expect the fund from the net proceeds to be utilized in advancing the company’s research and development programs. Earlier this month, Alnylam gave a brief update on its key “Alnylam 5x15” pipeline and partner program for the next two years (2013 and 2014).
Alnylam plans to advance its familial amyloidotic polyneuropathy (:FAP) candidate, ALN-TTR02, into phase III studies. We note that the candidate is currently in a phase II study, with results expected in mid-2013. Moreover, the company intends to commence an open-label extension study on the candidate in mid-2013 as a long-term treatment for patients participating in the ongoing phase II study.
Alnylam has plans to complete a phase I study on another candidate ALN-TTRsc, being developed for the treatment of patients suffering from familial amyloidotic cardiomyopathy (FAC). The company plans to move the candidate into a pilot phase II study in late 2013.
The company also intends to expand its ‘Alnylam 5x15’ pipeline with ALN-AT3 and ALN-AS1, which are being developed for the treatment of hemophilia and rare bleeding disorders (:RBD) and acute intermittent porphyria (:AIP), respectively.
We expect investor focus to remain on Alnylam’s pipeline. We currently have a Neutral recommendation on Alnylam. The stock carries a Zacks Rank #4 (Sell). However, other pharma stocks such as Targacept Inc (TRGT) and Peregrine Pharmaceuticals Inc (PPHM) carry a Zacks Rank #1 (Strong Buy).
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