Alnylam Pharmaceuticals(ALNY)2025-02-13 13:31Financial Performance - Total revenues for 2024 reached $2,248,243, an increase of 23% compared to $1,828,292 in 2023, and a significant increase of 76% from $1,037,418 in 2022[491]. - Net product revenues increased to $1,646,228 in 2024, up 33% from $1,241,474 in 2023, driven primarily by sales of AMVUTTRA[492]. - The company reported a net loss of $278,157 for 2024, a decrease of 37% from a net loss of $440,242 in 2023[491]. - Total operating costs and expenses for 2024 were $2,425,128, reflecting a 15% increase from $2,110,467 in 2023[491]. - Net revenues from collaborations decreased to $510,221 in 2024, down 7% from $546,185 in 2023, primarily due to reduced revenue from the Roche collaboration[496]. - Royalty revenue increased significantly to $91,794 in 2024, a 126% increase from $40,633 in 2023, attributed to higher royalties from Leqvio sales by Novartis[496]. - The accumulated deficit as of December 31, 2024, was $7.29 billion, reflecting ongoing investments in research and development[488]. - The company anticipates achieving financial self-sustainability by the end of 2025, despite expected fluctuations in operating results[488]. Sales Performance - Sales of ONPATTRO decreased by 29% in 2024 compared to 2023, while AMVUTTRA sales surged by 74% during the same period[493]. - The company expects net revenues from collaborations to increase in 2025, driven by anticipated higher revenues under the Roche collaboration[498]. - AMVUTTRA sales in the United States surged to $630.6 million in 2024, compared to $411.2 million in 2023, reflecting a 53.3% growth[627]. Cost and Expenses - Cost of goods sold increased to $306.5 million in 2024, up 14% from $268.2 million in 2023, with a significant increase of 91% from $140.2 million in 2022[500]. - Cost of goods sold as a percentage of net product revenues decreased to 18.6% in 2024 from 21.6% in 2023, attributed to one-time charges in 2023 that did not recur[501]. - Research and development expenses rose to $1.1 billion in 2024, a 12% increase from $1.0 billion in 2023, and a 14% increase from $883.0 million in 2022[505]. - Selling, general and administrative expenses increased to $975.5 million in 2024, a 23% rise from $795.6 million in 2023, driven by marketing investments and higher employee compensation[507]. Cash Flow and Investments - Net cash used in operating activities was $(8.3) million in 2024, a decrease of $112.5 million compared to $104.2 million in 2023, primarily due to decreased cash received from collaborators[512]. - Net cash used in investing activities decreased to $(116.8) million in 2024 from $(336.4) million in 2023, mainly due to the timing of investments in marketable debt securities[514]. - Net cash provided by financing activities increased to $294.2 million in 2024, up $122.0 million from $172.1 million in 2023, primarily due to increased proceeds from stock options[515]. - Cash outflows for capital expenditures were $34.3 million in 2024, compared to $62.2 million in 2023, with expectations for an increase in 2025 to support manufacturing and production capacity needs[517]. Liabilities and Future Obligations - The liability related to the sale of future royalties totals approximately $1.02 billion, with no principal payments expected within the next 12 months[517]. - Payments to Blackstone associated with the liability related to the sale of future royalties were $57.0 million in 2024, with an estimated $131.8 million to be paid within the next 12 months[517]. - The company has established a development derivative liability of $486.9 million as of December 31, 2024[683]. Market Position and Strategy - The company aims to transition to a top-tier biotech company by the end of 2025 under its Alnylam P x25 strategy, focusing on sustainable innovation and exceptional financial performance[563]. - The company has five marketed products as of December 31, 2024, including one product commercialized by a collaborator[516]. - Alnylam has five marketed products as of December 31, 2024, generating worldwide product revenues primarily from ONPATTRO, AMVUTTRA, GIVLAARI, and OXLUMO[563]. Accounting and Revenue Recognition - The company recognizes revenue when control of promised goods or services is transferred to a customer, following a five-step model[8]. - Net product revenues are recognized net of variable consideration, with the expected value method used for estimating variable consideration related to product sales[11]. - The liability related to the sale of future royalties is accounted for as debt financing, with interest recognized using the effective interest rate method[14]. - The company does not capitalize any costs to obtain contracts as of December 31, 2024, and 2023[10]. Collaborations and Agreements - Roche made an upfront, non-refundable payment of $310.0 million as part of the collaboration agreement for the development of zilebesiran[637]. - The total transaction price under the Roche Agreement was determined to be $1.31 billion as of December 31, 2024, an increase of $457.5 million from the previous year[651]. - The Roche Agreement includes a $310.0 million upfront payment and $547.0 million in additional variable consideration related to development and manufacturing services[647]. - The company has earned $180.0 million in milestones from the collaboration with Novartis AG and is entitled to royalties ranging from 10% to 20% based on annual worldwide net sales[680].