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When Will Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) Turn A Profit?

Simply Wall St
·3 mins read

With the business potentially at an important milestone, we thought we'd take a closer look at Alnylam Pharmaceuticals, Inc.'s (NASDAQ:ALNY) future prospects. Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, focuses on discovering, developing, and commercializing RNA interference (RNAi) therapeutics. The US$17b market-cap company posted a loss in its most recent financial year of US$886m and a latest trailing-twelve-month loss of US$846m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Alnylam Pharmaceuticals will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Alnylam Pharmaceuticals

Alnylam Pharmaceuticals is bordering on breakeven, according to the 21 American Biotechs analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$244m in 2023. The company is therefore projected to breakeven around 3 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 65% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

Underlying developments driving Alnylam Pharmaceuticals' growth isn’t the focus of this broad overview, but, keep in mind that typically biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there’s one aspect worth mentioning. Alnylam Pharmaceuticals currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are key fundamentals of Alnylam Pharmaceuticals which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Alnylam Pharmaceuticals, take a look at Alnylam Pharmaceuticals' company page on Simply Wall St. We've also compiled a list of important factors you should further research:

  1. Valuation: What is Alnylam Pharmaceuticals worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Alnylam Pharmaceuticals is currently mispriced by the market.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Alnylam Pharmaceuticals’s board and the CEO’s background.

  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.