Shares in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) slumped a dismal 48.49% to close at $36.21, with 16.72 million shares traded.
Shareholders saw their wealth wiped out by over $2.5 billion as the shares cratered and market capitalization halved.
The reason for the debacle was an announcement by the company that it was scrapping testing of Revusiran, its drug for the treatment of ATTR amyloidosis, a fatal disease that can cause heart failure, after 18 patients died during phase III testing.
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) discontinues development of revusiran
According to the company, a 206-patient trial of revusiran was observed to suffer “an imbalance” of deaths of patients who were administered the drug compared to those on placebo.
Executives confirmed on a conference call that 18 patients died, but did not specify how many of those were being administered the drug.
“Patient safety comes first. We have stopped all dosing and are actively monitoring patients across revusiran studies to ensure their safety. We will also continue to evaluate ENDEAVOUR data to understand the potential cause of these findings,” said John Maraganore, Ph.D., Chief Executive Officer.
Analysts slash Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) price targets
Analysts at Stifel retained their Hold rating but lowered their price target from $68 to $36.
Needham also reiterated their Buy rating, but tapered their PT from $152 to $137.
FBR and Chardan Capital Markets retained ratings of Outperform and Buy respectively, but lowered price projections – FBR from $180 to $100, and Chardan from $115 to $77.
Cowen analyst Ritu Baral confirmed her Outperform rating but lowered the price target from $150 to $100.
Analysts at Jefferies have a Buy rating but lowered their PT from $86 to $58.
Law firms line up Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) in their cross hairs
Goldberg Law PC, Bronstein, Gewirtz & Grossman, LLC, and Levi & Korsinsky, LLP are three law firms who have commenced an investigation of Alnylam Pharmaceuticals for possible violations of securities laws by the company or its executives.