Alnylam Pharmaceuticals, Inc. (ALNY)’s Surge Caps Off a Strong Week in Biotech

Page 2 of 2

Analysts expect around $1.5 billion in sales for the drug this year and north of $2.5 billion by 2017, helped out by the therapy’s costly list price of more than $400,000. For Roche Holding Ltd. (ADR) (OTCBB:RHHBY), expanding into orphan drugs with big potential — especially with Alexion’s second orphan drug in the pipeline, asfotase alfa, gaining a development-expediting breakthrough therapy designation from the FDA back in May — is worth a big payout. For Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) investors, it could be a marvelous addition to what’s been a great run-up for this biotech boomer.

Yet no stock in biotech had a week like Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), whose stock shot up more than 32% over the past five days. Company shares rocketed up 19% on Thursday alone, after the company released early-stage clinical results that showed Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)’s developmental therapy ALN-TTRsc, a treatment for a rare genetic disorder, reduced levels of the disease, transthyretin (or TTR) amyloidosis, by 80%. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) also noted that the drug had been well received by clinical subjects, a critical key for investors cautious about the drug’s safety.

It’s important to note that the subcutaneous ALN-TTRsc’s still in early trials, but both it and Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)’s injectable ALN-TTR02, another early-stage treatment for gene disorders, have shown promise so far. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) will have to show more of the same down the road, but it’s so far, so good for this biotech in its early going. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)’s stock has shot up by more than 170% so far, so expect likely volatility in the future — but in the big picture, positive results are all that matter for long-term biotech investors.

The article Alnylam’s Surge Caps Off a Strong Week in Biotech originally appeared on Fool.com is written by Dan Carroll.

Fool contributor Dan Carroll and The Motley Fool have no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2