The Medicines Company (MDCO) and Alnylam Pharmaceuticals Inc. (ALNY)’s Positive Phase I Results Support Hedge Funds’ Confidence in These Companies

On August 30, The Medicines Company (NASDAQ:MDCO) and Alnylam Pharmaceuticals Inc. (NASDAQ:ALNY) announced positive initial results from their ongoing Phase I clinical trial with ALN-PCSsc at ESC Congress 2015 in London. The two companies have been collaborating on the advancement of the aforementioned product since early 2013, when they formed an agreement stipulating that Alnylam is set to complete certain preclinical studies and a Phase I clinical study, whereas The Medicines Company will fund the development from Phase II onward. The stock of the Medicines Company skyrocketed in pre-market and gained 16% in the first hours of trading on Monday, while Alnylam’s stock opened 7% in green but later retracted and has declined by more than 3%. With this in mind, let’s take a closer look at the hedge fund sentiment surrounding the both companies.

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Let’s now discuss in more detail the product candidate being developed by these companies. ALN-PCSsc is an investigational RNAi therapeutic targeting PCSK9, which is a genetically validated protein regulator of low-density lipoprotein (LDL) receptor metabolism, and is developed for the treatment of hypercholesterolemia. The results from the ongoing Phase I clinical trial revealed that this experimental treatment lowed bad cholesterol by up to 83% compared to published results from studies with another class of drugs used for the treatment of cholesterol. Meanwhile, the lead development responsibility for ALN-PCSsc will transfer to The Medicines Company from Alnylam. The product will be progressed in the ORION development program, which is a global clinical development plan designed to support regulatory approval and market access worldwide for ALN-PCSsc. Ultimately, the first Phase II study is anticipated to start by the end of this year, while the Phase III clinical trials are expected to begin in 2017.