The Alnylam Turnaround: What Changed Investors’ Minds?

12 Sep 2012

• By Michael Goodman

Alnylam’s release of early-stage clinical data for its lead amyloidosis project in July caused a surge in its market value and rare cheers from investors. Years removed from its most recent high-profile technology deal, Alnylam is a company on the verge of completing the trickiest metamorphosis in biotech: from technology platform to product focus without the benefit of transformational M&A.

Between January 2005 and May 2008, Alnylam Pharmaceuticals Inc.’s stock rose nearly 400%. That incredible value creation was driven by alliances with Novartis AG, Roche, and Takeda Pharmaceutical Co. Ltd., which together brought in about a half billion dollars in up-front cash and equity payments. [See Deal][See Deal][See Deal]

But after 2008, Alnylam’s lifeblood of pharmaceutical partnerships – largely struck as non-exclusive alliances that for years gave the illusion...