Alnylam tumbles after warning of potential demand hit from drug pricing changes
ALNY•Alnylam shares fell 14.9% after the company warned that drug pricing changes could adversely affect demand and revenue for Amvuttra. Stifel downgraded the stock to hold from buy and cut its price target to $225 from $318.
1. Pricing changes raise concerns
Alnylam said in a filing that some Medicare Advantage plans require patients to try other therapies before receiving Amvuttra, and that more payors could follow. The company said this could “adversely affect demand” and revenue for the drug, which treats transthyretin amyloid cardiomyopathy and is a major growth driver.
2. Stifel cuts its rating
The company also said changes to 340B drug pricing, which requires pharmaceutical companies to offer medicines at lower prices to certain hospitals and clinics, “may adversely affect the demand” for its products. Stifel downgraded Alnylam to hold from buy and lowered its price target to $225 from $318, citing slowing Amvuttra growth and expectations for lower near-term sales estimates. The shares briefly paused for volatility.
