BUZZ-Alnylam shares plunge after the company warns that drug price adjustments may dampen demand

October 29 - ** Pharmaceutical company Alnylam Pharmaceuticals (ALNY.O) shares fell 14.9% to $197.8, reaching their lowest point since June 2024

** Trading of ALNY shares was briefly halted due to sharp price fluctuations

** Some Medicare Advantage plans require patients to try other therapies before using Amvuttra, and more payers may follow suit, which could “adversely affect demand and revenue for the drug,” Alnylam Pharmaceuticals (link) said in a filing

** Amvuttra is Alnylam’s main growth driver and is used to treat a heart disease known as transthyretin amyloid cardiomyopathy (ATTR-CM)

** The company noted that changes to the 340B drug pricing policy—which requires pharmaceutical companies to offer drugs at lower prices to certain hospitals and clinics—“may adversely affect” demand for its products

** Stifel downgraded the stock to “hold” from “buy” and lowered its target price to $225 from $318, citing slowing growth for Amvuttra and expectations that near-term sales guidance will be cut

** Stifel added: “Potential changes to the 340B program remain an overhang on the stock”

** Out of 32 brokerages, 24 rate the stock as “buy” or higher, while 8 rate it as “hold”; its median target price is $349.5

** Including the day’s performance, the stock is up about 50% year to date

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