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

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.

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