Alnylam's $2.17 Billion Quarterly Profit Rests On A $1.87 Billion Tax Benefit
Pretax income was $295.8 million, and income from operations slipped to $345.8 million from $368.0 million a year earlier.
Alnylam Pharmaceuticals, which develops medicines based on RNA interference, reported a $2.17 billion third-quarter net profit, or $15.72 per diluted share, but most of it came from a $1.87 billion income tax benefit. Income before taxes was $295.8 million, and income from operations fell to $345.8 million from $368.0 million a year earlier.
A $1.95 billion allowance comes off
Citing "sustained profitability" and its outlook for taxable income, Alnylam decided certain U.S. federal and state deferred tax assets were likely to be usable. It released $1.95 billion of valuation allowance, the reserve held against those assets, and booked the release as a discrete benefit.
The benefit compares with $12.1 million in the third quarter of 2025. For the first nine months, net income was $2.54 billion, against $202.2 million a year earlier.
Deferred tax assets on the balance sheet now stand at $2.01 billion, up from $126 million at the end of 2025. Accumulated deficit narrowed to $4.16 billion from $6.70 billion at year-end, and stockholders' equity rose to $3.60 billion from $789 million.
The prior quarter's 10-Q said the company "could record a reversal" of all or part of the U.S. allowance in the second half of 2026. That language is gone from the new filing. The company keeps reserves against some operating-loss and credit assets, state research credits among them, and will revisit them each quarter.
Sales surge, margins thin
Underneath the tax item, the business grew. Total revenue rose 17% to $1.46 billion, and net product revenue climbed 52% to $1.29 billion, led by AMVUTTRA at $1.13 billion, up 65%, mainly on demand from U.S. patients with a heart form of the disease.
Collaboration revenue fell 80%, because the year-earlier quarter held a $300.0 million Roche milestone. Royalty revenue more than doubled, up 105% to $94.7 million, on sales of Leqvio.
Costs rose faster than revenue: operating expenses grew 26%. Cost of goods sold reached 28.0% of net product revenue from 23.2%, which the company ties to a higher blended royalty rate on AMVUTTRA sales. Research spending rose 14% to $408.5 million, including trials of nucresiran, its next-generation treatment for transthyretin amyloidosis.
Cash, pipeline and the next dates
Cash, cash equivalents and marketable securities were $3.59 billion at September 30, up from $3.31 billion at June 30. Nine-month operating cash flow was $738.2 million, versus $306.4 million a year earlier.
Alnylam also raised the target enrollment of its nucresiran heart trial to about 2,250 patients from 1,750, and still expects a launch by 2030 if data and approval come through. The company reiterated its full-year net product revenue guidance of $4.7 billion to $5.1 billion.
Regeneron's cemdisiran for myasthenia gravis faces an FDA decision targeted for November 2026.
Alnylam says it will report fourth-quarter results in February 2027, alongside clinical data from its ALN-6400 bleeding-disorder trial.
Sources
- 10-Q Filing — Alnylam Pharmaceuticals (ALNY) — SEC EDGAR
- 10-Q Filing — Alnylam Pharmaceuticals (ALNY), Q2 FY2026 filed 2026-07-30 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, alny2026q3earningsrelease.htm) — Alnylam Pharmaceuticals, filed 2026-10-29 — SEC EDGAR
- Alnylam: Q3 Earnings Snapshot — Associated Press
- Alnylam Pharmaceuticals Q3 2026 Earnings Preview (NASDAQ:ALNY) | Seeking Alpha — seekingalpha.com
- Alnylam Pharmaceuticals, Inc. (ALNY) Stock Price, News, Quote & History - Yahoo Finance — Yahoo Finance
- Alnylam: Q3 Earnings Snapshot | wusa9.com — Associated Press
- Alnylam (ALNY) Q3 Earnings on the Horizon: Analysts' Insights on Key Performance Measures — Yahoo Finance
