Shares of Alnylam Pharmaceuticals rose 16% in premarket trading on Thursday, while BridgeBio Pharma recorded a 10% uptick, following news that a late-stage rival drug did not meet its primary objectives.
The move came after Ionis Pharmaceuticals disclosed that Wainua - a drug co-developed with AstraZeneca - failed in a late-stage trial to reduce cardiovascular deaths and recurring heart-related complications. Ionis stock fell 21.8% to $67.80 in premarket trade after the announcement.
Both Alnylam and BridgeBio have approved therapies that target the same nerve disease addressed by Wainua. With the experimental drug falling short on its primary endpoints, analysts' prior projections of a roughly $2 billion peak-sales opportunity for Wainua have been diminished.
Market participants interpreted the trial outcome as a removal of a potential new competitor, narrowing the field in this therapeutic area. Companies that already market approved treatments for the condition - notably Alnylam and BridgeBio - are positioned to face less competition as they continue to promote their existing products.
The failed study represents a setback for Ionis and AstraZeneca in their effort to broaden the range of treatment options for patients with the nerve disease. The companies will need to assess the clinical data to determine next steps, while commercial dynamics in the sector adjust to the news.
Investors responded quickly to the development, rewarding firms with established therapies and penalizing the sponsor of the unsuccessful candidate. The reordering of competitive prospects followed directly from the trial outcome and the market’s reassessment of Wainua’s future revenue potential.
Key context
- Alnylam shares rose 16% premarket on Thursday.
- BridgeBio shares gained 10% in premarket trading.
- Ionis announced that Wainua failed to reduce cardiovascular deaths and recurring heart problems in a late-stage trial; Ionis shares fell 21.8% to $67.80 premarket.
Market implication
The unsuccessful trial diminished an anticipated peak-sales opportunity of about $2 billion for Wainua and shifted competitive advantage toward companies with approved treatments in the same nerve disease space.