Alnylam: Profitable But Punished, Is ALNY a Buy?

Alnylam Pharmaceuticals has transformed from a cash-burning biotech into a profitable company. In the second quarter of 2026, it reported GAAP net income of $164.5 million and adjusted earnings of $251.8 million, a dramatic swing from a net loss of $16.2 million just a year earlier. Revenue soared 67% year over year to $1.29 billion, driven by its flagship drug Amvuttra, which is gaining traction in the ATTR-CM market. The company also boasts a solid cash position of $3.3 billion.

Despite these impressive numbers, Alnylam's stock has plunged more than 40% year to date, erasing nearly all of its 69% gain from 2025. Investors are treating the stock like a broken biotech, but the financials tell a different story.

The sell-off was triggered by two main factors. First, management lowered its full-year revenue guidance for Amvuttra and Onpattra from $4.4-$4.7 billion to $4.2-$4.5 billion, citing demand normalization after an initial surge of patients switching to Amvuttra. Second, disappointing Phase 3 results for Wainua (eplontersen) in ATTR-CM, a drug marketed by AstraZeneca and Ionis Pharmaceuticals, raised concerns about Alnylam's own late-stage candidate nucresiran, which targets the same condition.

However, these concerns may be overstated. The guidance cut reflects a timing issue rather than a demand problem—Amvuttra sales continue to grow robustly. And Wainua's setback may not predict nucresiran's fate, as the two drugs use different mechanisms and have different trial designs. Alnylam could adjust its study if needed.

The stock's steep decline matters because it creates a disconnect between Alnylam's fundamental performance and its valuation. The company is now solidly profitable, with a rapidly growing product portfolio and a promising pipeline. The guidance cut, while disappointing, is a minor adjustment in the context of the company's overall growth trajectory. Amvuttra's sales are still expected to be between $4.2 and $4.5 billion this year, a substantial increase from prior levels.

Moreover, the concerns about nucresiran are speculative. Wainua's failure in ATTR-CM does not necessarily doom nucresiran, which works differently and is in late-stage testing. If nucresiran succeeds, it could be a major catalyst for the stock. The market seems to be pricing in a worst-case scenario that may not materialize.

Wall Street analysts remain overwhelmingly bullish. Of the 23 analysts covering Alnylam, 19 rate it a Buy, and the average 12-month price target implies a 54% upside. Some analysts, like Piper Sandler's Edward Tenthoff, see the stock more than doubling. This suggests that the sell-off may be an overreaction driven by short-term sentiment rather than long-term fundamentals.

For investors, the key question is whether Alnylam's growth story is intact. The evidence points to yes. The company's financial health, robust revenue growth, and pipeline potential make it a compelling opportunity, especially at a discounted price. The market's pessimism could be a chance to buy a quality biotech at a bargain.