Alnylam Pharmaceuticals(US:ALNY)2026-02-12 13:12Financial Performance - The company achieved profitability for the first time in 2025, with full-year net product revenues of approximately $3.0 billion, primarily driven by strong growth in the TTR franchise [524]. - Total revenues for 2025 were $3,713,937, representing a 65% increase from $2,248,243 in 2024 [529]. - Net product revenues increased by 81% to $2,986,549 in 2025, up from $1,646,228 in 2024, largely due to growth from AMVUTTRA [530]. - AMVUTTRA generated $2,313,836 in total revenues in 2025, with a significant increase of 138% compared to 2024 [531]. - Collaboration revenues increased by 8% to $553,366 in 2025, with Roche contributing $394,881, a 230% increase from the previous year [533]. - Royalty revenue surged by 90% to $174,022 in 2025, driven by increased sales of Leqvio by Novartis [534]. - The operating income for 2025 was $501,578, a significant turnaround from a loss of $176,885 in 2024 [529]. - The company anticipates fluctuations in operating results for the foreseeable future, making period-to-period comparisons less predictive [527]. Expenses and Costs - Total operating costs and expenses for 2025 were $3,212.4 million, a 32% increase from $2,425.1 million in 2024 [538]. - Cost of goods sold increased to $677.2 million in 2025, representing a 121% increase from $306.5 million in 2024, with a cost of goods sold percentage of net product revenues rising to 22.7% [538][539]. - Research and development expenses rose to $1,319.8 million in 2025, a 17% increase from $1,126.2 million in 2024, primarily due to increased clinical trial expenses and employee compensation [543][544]. - Selling, general and administrative expenses increased to $1,210.7 million in 2025, a 24% increase from $975.5 million in 2024, driven by higher employee compensation and marketing investments [546]. Cash Flow and Financing - Net cash provided by operating activities was $524.1 million in 2025, a significant increase from a cash outflow of $8.3 million in 2024, attributed to stronger product sales [551]. - Net cash provided by investing activities for the year ended December 31, 2025, was $436.3 million, compared to a net cash used of $116.8 million in 2024 [552]. - Net cash used in financing activities was $305.2 million in 2025, a significant change from the $294.2 million provided in 2024, primarily due to $1.15 billion paid for the repurchase of 2027 Notes [553]. Deficit and Future Outlook - The company reported an accumulated deficit of $6.70 billion as of December 31, 2025, despite achieving profitability [524]. - The company expects net revenues from collaborations to decrease in 2026 compared to 2025, primarily due to the recognition of $300.0 million milestone revenue from the Roche Collaboration in 2025 [535]. - Royalty revenue is anticipated to increase in 2026 compared to 2025, driven by the growth of royalties from global net sales of Leqvio by Novartis [535]. - The company may require significant additional funds earlier than expected to continue commercializing existing products and developing new candidates [558]. Assets and Liabilities - As of December 31, 2025, the accumulated deficit reached $6.70 billion, while cash, cash equivalents, and marketable securities totaled $2.91 billion, up from $2.69 billion in 2024 [557]. - Future lease payments for operating lease obligations totaled $366.3 million as of December 31, 2025, with $48.1 million expected to be paid within the next 12 months [562]. - Capital expenditures increased to $58.7 million in 2025 from $34.3 million in 2024, with expectations for further increases in 2026 to support manufacturing capacity [562]. - The carrying value of convertible debt was $1.01 billion as of December 31, 2025, with no principal payments expected in the next 12 months [562]. Interest and Taxation - Interest expense increased to $252.6 million in 2025, a 78% rise from $141.9 million in 2024 [548]. - The company recorded a provision for income taxes of $9.4 million in 2025, compared to a benefit of $99.2 million in 2024 [549]. - Total other expense, net decreased to $178.4 million in 2025, an 11% improvement from $200.5 million in 2024, mainly due to reduced losses related to the change in fair value of the development derivative liability [548]. Risk Factors - The estimated impact of a 10% change in the interest rate would result in a liability adjustment of approximately $42.1 million related to future royalties and development funding [569]. - The company is exposed to foreign currency exchange risks primarily from operations in Japan, Europe, and the UK, which may affect financial results as international sales grow [572].