ALNY

FY2025 is the inflection year: the MD&A confirms Alnylam 'achieved profitability for the first time in 2025,' and the numbers back it across the board — revenue $3.71B (+65.2%), operating income $502M (+383.6%), net income $314M (from -$278M a year ago), and diluted EPS $2.33 (+206.9%). The TTR/AMVUTTRA franchise drove ~$3.0B of net product revenue. Cash generation is real, not just GAAP: operating cash flow was $524M against only $58.7M of capex (~$465M free cash flow), and the balance sheet holds $1.66B cash with current assets of $4.05B over $1.47B current liabilities (~2.8x). The optically alarming 5.29x liabilities/equity and 39.8% ROE are both artifacts of a thin $789M equity base suppressed by a $6.70B accumulated deficit — this is a biotech that just crossed into profit, not a levered balance sheet under stress.

The quality question is durability and concentration. The risk factors lead with it bluntly: 'If we are unable to sustain and grow revenues from sales of AMVUTTRA, our business would be materially harmed.' Margins are structurally thin by design — net margin is only 8.4% despite the revenue scale — because Sanofi takes tiered royalties up to 30% on AMVUTTRA sales above $1.5B, and the company plows ~$1.32B (roughly 30% of revenue) back into R&D to feed the pipeline. So this is a single-franchise, royalty-burdened, reinvestment-heavy story today.