Alnylam
ALNY · NasdaqA tax release supplied 86.3% of the $2.17B profit
Net income of $2.17B far exceeded pre-tax income of $295.8M, because a $1.87B tax benefit supplied 86.3% of it.
Q3 FY2026, the quarter to Sep 30, 2026 · 10-Q filed Oct 29, 2026
- Operating margin
- 23.7%
- Net income
- $2.2B
- Free cash flow, quarter
- $271.2M
Largest source of revenue: Amvuttra, 77.5% of the total.
Where Alnylam's money goes
- 01
A tax release supplied 86.3% of the $2.17B profit
Net income of $2.17B far exceeded pre-tax income of $295.8M, because a $1.87B tax benefit supplied 86.3% of it.
Why it matters
Income before income taxes was $295.8M, up 5.4% from $280.6M a year earlier. Net income was $2.17B, against $292.7M. The difference is a $1.87B benefit from income taxes, which the filing attributes to the “release of valuation allowances on certain U.S. federal and state deferred tax assets”. Diluted earnings per share were $15.72, against $2.14.1
The benefit is an accounting entry, not cash. Operating cash flow for the quarter was $341.0M, 15.7% of net income, and free cash flow was $271.2M, against $284.7M a year earlier.1
AnalysisReleasing the allowance means the company now judges it more likely than not that past losses will shelter future taxable profit: its profit record has become strong enough to change that judgment. Later quarters are likely to carry a tax charge in the income statement, so income from operations and cash flow are the steadier lines for comparing periods across this change.
- 02
Amvuttra grew 64.9% while operating income fell 6.0%
A Roche milestone in last year's quarter and a rising royalty cost on Amvuttra outweighed product growth, so operating margin fell to 23.7%.
Why it matters
Net product revenues rose 51.8% to $1.29B, and Amvuttra alone rose 64.9% to $1.13B. Total revenues rose only 16.7% to $1.46B, because net revenues from collaborations fell 79.7% to $71.5M from $351.7M. The filing attributes the drop to milestone revenue recognized from Roche in the prior-year quarter, when the first patient was dosed in the zilebesiran outcomes trial.1
A year earlier collaboration revenue was 28.2% of total revenues; this quarter it was 4.9%. Net product revenues went from 68.1% of total revenues to 88.6%. Meanwhile cost of goods sold rose 83.4% to $361.8M and total operating costs and expenses rose 26.3%, so income from operations fell to $345.8M from $368.0M and operating margin to 23.7% from 29.5%.1
AnalysisThe decline is a comparison effect more than a weakening of the business. Milestones arrive when trials reach set points and do not recur on a schedule, so the prior-year margin was flattered. The recurring base, product sales and partner royalties, grew much faster than the total suggests.
- 03
Amvuttra's royalty to Sanofi climbs as its sales grow
Cost of goods sold reached 28.0% of net product revenues, from 23.2%, which the filing attributes to a higher blended royalty rate on Amvuttra.
Why it matters
Alnylam owes Sanofi tiered royalties on global annual net sales of Amvuttra, with higher tiers applying as sales rise, and carries them in cost of goods sold. Cost of goods sold was $361.8M, against $197.2M a year earlier, up 83.4%, while net product revenues rose 51.8%. It took 24.8% of total revenues, 9.0 points more than a year earlier, leaving a gross margin of 75.2%.1
The company expects cost of goods sold, as a share of net product revenues, to keep rising this year for the same reason. It says no royalties are owed on nucresiran, its next-generation TTR medicine now in late-stage trials, and that it could significantly improve gross margins on product sales, assuming successful development and regulatory approval.1
AnalysisThis is a cost of success built into the licence: each added dollar of Amvuttra sales carries a higher royalty than the average dollar before it, so gross margin on product sales tends to slip as the drug grows. The structural answer is a successor the company owns free of that royalty, which makes the timing and success of nucresiran a margin question, not only a growth one.
Sources
- 1.Alnylam 10-Q for the period to 2026-09-30 (the filing), Oct 29, 2026, read Nov 2, 2026
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Growth, profit and margin
Revenue went from $96.2M in FY2008 to $3.7B in FY2025, the operating margin from -28.9% to 13.5%, over 17 years.
- Revenue$3.7B
- Operating income$501.6M
- Operating margin13.5%
- Period
- Q3 FY2026
- Revenue
- $1.5B
- Operating income
- $345.8M
- Operating margin
- 23.7%
- Net income
- $2.2B
- Free cash flow
- $271.2M
Does the profit turn into cash?
Q3 FY2026: free cash flow of $271.2M against net income of $2.2B in the quarter.
- Operating cash flow$524.1M
- Capital expenditure$58.7M
- Free cash flow$465.4M
- Net income$313.7M
Capital expenditure is drawn below the axis as cash out. Cash conversion is operating cash flow over net income, shown in the tooltip for years with a profit.
Financial data and sources
How the revenue mix has shifted
Each breakdown the filing reports, as shares of revenue, for every period it restates.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME. The filing restates this breakdown for 1 period.
Click a member to isolate it across the years shown.
The figures
Margins, cash and growth for the period, each with what it was computed from.
Where revenue comes from
Every breakdown the filing reports for the period, with each item's share.
Revenue streams
| Net product revenues | $1.3B | 88.6% |
| Royalty revenue | $94.7M | 6.5% |
| Net revenues from collaborations | $71.5M | 4.9% |
Product categories
| Amvuttra | $1.1B | 77.5% |
| Givlaari | $89.5M | 6.1% |
| Oxlumo | $52.5M | 3.6% |
| Onpattro | $19.6M | 1.3% |
These items do not sum to total revenue; the filing states them beside it. Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, as reported in the 10-Q filed 2026-10-29
Geographic markets
| Europe | $130.7M | 9.0% |
| Rest of World | $91.0M | 6.2% |
These items do not sum to total revenue; the filing states them beside it. Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, as reported in the 10-Q filed 2026-10-29
CounterpartyName
| Roche | $39.1M | 2.7% |
| Regeneron Pharmaceuticals | $32.3M | 2.2% |
| Other | $35.0K | 0.0% |
These items do not sum to total revenue; the filing states them beside it. Source10-Q, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, as reported in the 10-Q filed 2026-10-29
What it costs
The cost lines beneath operating income, each as a share of revenue, then the operating result.
Costs are reported by function: what it cost to make what was sold, then the expenses of selling, developing and administering.
| Cost line | Q3 FY2026 | Of revenue | Source |
|---|---|---|---|
| Total operating costs and expenses | $1.1B | 76.3% | Source10-Q, us-gaap:CostsAndExpenses, as reported in the 10-Q filed 2026-10-29 |
| Income from operations | $345.8M | 23.7% | Source10-Q, us-gaap:OperatingIncomeLoss, as reported in the 10-Q filed 2026-10-29 |
Operating figures the company states
From the text of the filing rather than its statements, each with the sentence that states it.
View source
Leqvio has also been approved in China and Japan, and as of the end of September 2026, Leqvio is registered in 109 countries worldwide and is commercially available in 89 countries.
View source
Leqvio has also been approved in China and Japan, and as of the end of September 2026, Leqvio is registered in 109 countries worldwide and is commercially available in 89 countries.
The statements, as filed
The income statement, cash flow statement and balance sheet in the company's own order and words. Every line links to the filing.
Income statement28 lines, as presented in the 10-Q
Cash flow statement2 lines, as presented in the 10-Q
Year to date, as a quarterly filing reports it.
| Line | Q3 FY2026 | A year earlier | Change | Source |
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income | $2.17B | $292.7M | +641% | Source10-Q, us-gaap:NetIncomeLoss, as reported in the 10-Q filed 2026-10-29 |
| Statement of Cash Flows | ||||
| Cash, cash equivalents and restricted cash, end of period | $1.76B | $1.49B | +18% | Source10-Q, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-Q filed 2026-10-29 |
Balance sheet31 lines, as presented in the 10-Q
About this data
- Source
- Alnylam 10-Q, accession 0001178670-26-000076, filed Oct 29, 2026, read on Nov 2, 2026.
- History
- From the SEC's XBRL company facts, the value from the latest filing that stated each period.
- Reading
- Paragraphs marked Analysis are CXProWealth's reading; everything else is the filing's own numbers and words, or a cited source.
- Version
- methodology business-lens-1.0 · schema 1.2.0 · run business-lens-2026-11-02
What holds Alnylam's model up, and what could bend it
Competitive edge
Partner royalties now outsell Alnylam's second-largest drug
Royalty revenue of $94.7M, up 104.9%, exceeded both Givlaari's $89.5M and collaboration revenue of $71.5M, earned without Alnylam's own sales force.
The detail
Royalty revenue was $94.7M, against $46.2M a year earlier. The filing attributes the rise to “increased volume and rate of royalties earned from global net sales of Leqvio by Novartis”. Leqvio, a cholesterol medicine built on Alnylam's RNAi technology, is registered in 109 countries and commercially available in 89.1
AnalysisThe model splits the market by who can reach it. Alnylam sells its rare-disease medicines through a focused specialist sales force and licenses mass-market medicines to partners with global primary-care reach. Royalties recur with the partner's sales, unlike milestones, which arrive once when a trial or approval point is met.
The stream is not wholly Alnylam's. It sold part of the Leqvio royalty stream to Blackstone, and Blackstone's share rises if its receipts miss a set threshold by a set date. Novartis can also end the Leqvio agreement on short notice.1
Research and selling costs grow slower than revenue
Research rose 13.9% and selling, general and administrative 6.2%, against 16.7% revenue growth, so a largely fixed cost base carries more sales.
The detail
Research and development was $408.5M, 28.0% of total revenues, 0.71 points lower than a year earlier. Selling, general and administrative was $342.0M, 23.5% of total revenues, 2.33 points lower. The filing attributes the research increase mainly to late-stage trials of zilebesiran and nucresiran, and the selling increase to the global launch of Amvuttra in ATTR-CM.1
The same pattern turned the company profitable. It reported an operating loss of $814.7M in FY2018 on revenue of $74.9M, and still a loss of $176.9M in FY2024. In FY2025 revenue of $3.71B produced operating income of $501.6M, a 13.5% operating margin, against 23.7% this quarter.1
AnalysisMost of these costs do not scale with each patient treated, so a large product spreads them thin. The company still plans heavy research investment, so the leverage holds only while revenue growth stays ahead of a pipeline that is itself growing.
One RNAi platform behind every product and royalty
The same gene-silencing platform produced Amvuttra, Givlaari, Oxlumo and partner-sold Leqvio, taking annual revenue from $74.9M in FY2018 to $3.71B in FY2025.
The detail
Alnylam's medicines are small interfering RNAs that silence a disease-causing gene, delivered to the liver through a GalNAc conjugate or a lipid nanoparticle. This quarter Amvuttra sold $1.13B, Givlaari $89.5M, Oxlumo $52.5M and Onpattro $19.6M, and royalties on partner-sold medicines added $94.7M. FY2025 revenue was 49.6 times FY2018's.1
AnalysisOnce delivery to one tissue works, each new medicine is largely a question of choosing a genetically validated gene and designing a new sequence, which lowers the cost and risk of each added product. The company is working to extend delivery to the central nervous system, the eye and other tissues; that extension has not yet produced an approved medicine.
What to watch
One medicine is 77.5% of total revenue
Amvuttra brought in $1.13B, 87.5% of net product revenues, so its net price, payer coverage and competition now decide most of each quarter.
The detail
Amvuttra's share of total revenues rose 22.7 points from a year earlier to 77.5%. The company's first listed risk is that its business would be materially harmed if it cannot sustain and grow Amvuttra sales. It names payer coverage, U.S. drug price controls including government price negotiation and most-favored-nation pricing, competing therapies including generic versions of competitors, and uninterrupted supply.1
The rest of the product line is small: Givlaari was 6.1% of total revenues, Oxlumo 3.6% and Onpattro 1.3%. Onpattro fell 49.9%, which the filing puts down to a decreased number of patients on it.1
AnalysisNone of these named pressures shows yet in reported Amvuttra sales, which kept growing quickly this quarter. The exposure is what a single change in price, access or competition would do to a company whose cost base was built around one product's revenue.
Interest on sold royalties takes a growing profit share
Interest expense rose 25.1% to $84.4M, equal to 24.4% of operating income against 18.3% a year earlier, driven by liabilities tied to sold future revenue.
The detail
The filing attributes the higher interest expense to “the liabilities related to the sale of future royalties and development funding”: part of the Leqvio royalty stream sold to Blackstone, and Blackstone funding for vutrisiran (Amvuttra) and zilebesiran that is repaid out of those products' success. Interest expense was 2.7 times interest income of $30.9M.1
Because repayments track product sales, the filing says a significant increase or decrease in Amvuttra's global net product revenues will materially affect that liability and its interest expense. Total other expense, net fell to $50.0M from $87.4M only because the prior-year quarter carried a $39.1M loss related to convertible debt.1
AnalysisThis funding brought cash without issuing shares, but it is priced like a share of the upside: the better the products sell, the higher the cost. It sits below operating income, so operating margin alone overstates how much of each sales dollar reaches shareholders.
Supply rests on a few outside manufacturers
Contract manufacturers make all of Alnylam's drug product, and new U.S. tariffs and the BIOSECURE Act add cost and supply pressure the filing names.
The detail
The company relies on a limited number of contract manufacturers in North America, Europe and Asia for all of its drug product for clinical and commercial use, and on specialized delivery technology that only one or a few manufacturers may be able to make. It manufactures only limited quantities of clinical drug substance itself.1
It names a U.S. tariff on imported patented pharmaceuticals, in effect since late September, which it says may increase cost of goods sold, and the BIOSECURE Act, which could restrict work with certain Chinese suppliers. It is expanding its Norton, Massachusetts plant with an enzymatic manufacturing platform designed to raise capacity and reduce production costs.1
AnalysisWith cost of goods sold already rising on royalties, any tariff or supply cost lands on the same line. Building in-house capacity is the long answer, and it takes years and capital before it changes that line.
Sources
- 1.Alnylam 10-Q for the period to 2026-09-30 (the filing), Oct 29, 2026, read Nov 2, 2026
Alnylam, further in
Member research, then your own questions on ChatGPT.
What could change the outlook
What Alnylam's numbers depend on from here, read from the filing: the conditions behind this period's margins and growth, and where a change would show first.
- What has to hold for the margin to widen from here?
How the Amvuttra royalty schedule, a largely fixed cost base and the switch to a royalty-free successor interact, and which reported lines show first whether the path is on track.
- Reading Alnylam's earnings after the tax release
Which lines carry the operating story now that deferred tax assets sit on the balance sheet, and how to compare quarters fairly across the change.
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Have a question about Alnylam?
Explore its profit drivers, competitive edge, risks, or your own investment and business questions with CXProWealth on ChatGPT.
- How would a successful nucresiran launch change the royalty Alnylam pays Sanofi on its TTR franchise?
- Without the $1.87B tax benefit, how did Alnylam's quarterly profit compare with a year earlier?
- How exposed is Alnylam's operating income to a cut in Amvuttra's U.S. net price?
Business Lens describes Alnylam from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing, the dates and the version are under the financial data above.