A look at Alnylam Pharmaceuticals (ALNY) valuation after Nasdaq 100 inclusion and convertible notes repurchase

Alnylam Pharmaceuticals (ALNY) just hit a fresh milestone, landing a spot in the Nasdaq 100 while simultaneously moving to repurchase a slice of its 2027 convertible notes, a pairing that reshapes both visibility and capital structure.

See our latest analysis for Alnylam Pharmaceuticals.

Even with the Nasdaq 100 inclusion and note repurchase in the spotlight, the share price has cooled lately, with a 7 day share price return of minus 13.22 percent and a 90 day share price return of minus 13.79 percent. Yet the year to date share price return of 70.17 percent and 5 year total shareholder return of 179.20 percent show that longer term momentum is still very much intact.

If this kind of catalyst driven move has your attention, it may be a good time to explore other innovative biotech names via healthcare stocks and see what else is setting up for growth.

With Alnylam trading at a sizeable discount to consensus targets despite strong revenue and earnings growth, the real question now is whether recent weakness marks an entry point or whether the market is already factoring in years of future expansion.

Most Popular Narrative: 19.3% Undervalued

With Alnylam closing at $397.55 versus a narrative fair value near $493, the valuation case leans heavily on fast scaling TTR revenues and margin expansion.

The strong track record of rapid health system integration and scalable commercial execution, with SG&A and R&D investments offset by exceptional sales growth, points to the start of meaningful operational leverage improving net margins as product revenues outpace fixed cost escalation.

Read the complete narrative.

Curious what kind of revenue surge and margin reset would need to play out to support this price tag on a single franchise heavy story? The most followed narrative lays out an aggressive growth arc, a richer profitability profile, and a forward earnings multiple more often reserved for elite compounders. Want to see exactly how those moving parts stack up to justify that fair value? Read on to unpack the assumptions behind the optimism.

Result: Fair Value of $493 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained TTR concentration risk and ongoing R&D and SG&A intensity could pressure margins and challenge the premium multiple that underpins today’s fair value.

Find out about the key risks to this Alnylam Pharmaceuticals narrative.

Another Angle on Valuation

On a simple price to sales lens, Alnylam looks far less forgiving. The stock trades at 16.4 times sales versus 12.1 times for the broader US biotech space and 8.6 times for close peers, and even above its own 15.4 times fair ratio, tilting today’s setup toward valuation risk rather than clear upside.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Alnylam Pharmaceuticals Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes, starting with Do it your way.

A great starting point for your Alnylam Pharmaceuticals research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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