Buffett Brain · Research note
Score updated 22 Oct 2026 · analysis from 15 Jun 2026
ALNY· Healthcare
Alnylam Pharmaceuticals
Alnylam Pharmaceuticals boasts a high gross margin of 80.9%, but its inconsistent ROIC and excessive valuation raise significant concerns.
Buffett fit
Partial fit
Owner
40
Durability
42
Management
46
Price
0
Score updated 22 Oct 2026 · analysis from 15 Jun 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Alnylam outright, I would be concerned about the sustainability of its high alongside a of 19.7%.
The full reasoning comes with a free account.
Over the next decade, Alnylam's durability hinges on its ability to maintain high margins and successfully commercialize its pipeline.
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Alnylam's share count has grown at 2.55% annually, indicating some dilution, and there have been no or dividends.
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The current of 68.1 and an yield of just 1.18% suggest that the stock is overvalued.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 80.9% exceeds the sector top-quintile cutoff of 78.0%.
- 2 of 17.5% is above the sector top-quintile of 16.1%.
- 3 of 19.7% is in the top quintile for the healthcare sector (p80 cutoff 10.6%).
- 4Current ratio of 3.13 indicates strong short-term liquidity.
Concerns
5- 15-year average of -37.3% raises doubts about long-term profitability.
- 2 ratio of 68.1 indicates significant overvaluation relative to earnings.
- 3No dividends or signal a lack of shareholder return initiatives.
- 4Negative market cap versus retained earnings of -17.92% suggests poor .
Price history
$225+13.3%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Alnylam Pharmaceuticals focuses on RNA interference therapeutics, with a strong pipeline including ONPATTRO and GIVLAARI. The company reported $3.71B in revenue, primarily from these marketed products. With a of 80.9%, the unit economics are strong, but the sustainability of this model remains uncertain.
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
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