Alnylam vs. Ionis: Here's the Better Bad-News Buy
Alnylam vs. Ionis: Here's the Better Bad-News Buy
Keith Speights, The Motley FoolSat, October 10, 2026 at 9:04 AM UTC
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Image source: Getty Images.The sell-offs for both of these beaten-down biotech stocks appear to be overdone.Key Points -
Alnylam cut its full-year revenue guidance due to slower-than-expected sales for Amvuttra.
Ionis experienced two pipeline setbacks on the same day in July.
One of these stocks offers a more attractive risk-reward proposition.
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Perhaps the best word to describe the performances of Alnylam Pharmaceuticals(NASDAQ: ALNY) and Ionis Pharmaceuticals(NASDAQ: IONS) in 2026 is "ouch." Both stocks have sunk like a brick year to date. The common denominator behind Alnylam's and Ionis' dismal returns is that each company has experienced its fair share of bad news.
In July, Alnylam cut its revenue guidance due to lower-than-expected sales of its flagship drug, Amvuttra. Ionis experienced two clinical setbacks on the same day, July 9, 2026: Eplontersen failed to meet its primary endpoint in a Phase 3 study for treating transthyretin amyloid cardiomyopathy (ATTR-CM), while Roche(OTC: RHHBY) threw in the towel on a Huntington's disease drug developed by Ionis.
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Which of these two beaten-down biotech stocks is the better bad-news buy? Here's how Alnylam and Ionis stack up against each other.
Alnylam vs. Ionis
There's a clear winner between these two stocks on the financial front. Alnylam's revenue soared 74% year over year in its latest quarter to $1.17 billion. The company posted adjusted earnings of $251.8 million. Meanwhile, Ionis' revenue declined by roughly 41% year over year in the second quarter of 2026 to $268 million, with an adjusted quarterly loss of $57 million.
Granted, Ionis' year-over-year comparison was hurt by a one-time upfront payment for its experimental therapy sapablursen recognized in 2025 Q2. Still, though, Alnylam has the undisputed financial edge.
Which company's news was worse? You could argue that Alnylam's slower-than-anticipated revenue for its top product, Amvuttra, was a bigger blow than Ionis' setbacks for its two partnered programs. However, Amvuttra's sales continue to skyrocket.
Also, Alnylam's competitive dynamics have improved thanks to two developments. Pfizer(NYSE: PFE) won't have generic competition for tafamidis until mid-2031, which helps Alnylam. Importantly, the disappointing late-stage results announced by AstraZeneca(NYSE: AZN) and Ionis for eplontersen could work to the benefit of Alnylam's late-stage candidate, nucresiran.
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Wall Street favors Ionis, though. Of the 21 analysts who have given ratings over the past three months, 17 recommended Ionis as a "buy" or better. Their average 12-month price target reflected a potential upside of roughly 88%. Analysts were also bullish about Alnylam, with 18 of 22 analysts rating the stock as a "buy" or better. However, the consensus price target was around 61% above the share price as of Tuesday, Oct. 6, 2026.
Better bad-news buy
The sell-offs for both of these growth stocks are overdone, in my view. I predict that both stocks will be market-beating winners over the next few years.
If I could only pick one of them, though, I'd go with Alnylam. Wall Street may be right that Ionis has more near-term upside potential, but I think Alnylam offers the more attractive risk-reward proposition.
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Keith Speights has positions in Pfizer. The Motley Fool has positions in and recommends Alnylam Pharmaceuticals, AstraZeneca Plc, Ionis Pharmaceuticals, and Pfizer. The Motley Fool recommends Roche Holding AG. The Motley Fool has a disclosure policy.
Source: “AOL Money”
