Alnylam Pharmaceuticals (ALNY) stock plummeted 5.03% in pre-market trading on Thursday following the release of its first quarter 2025 financial results. Despite reporting strong revenue growth, the company's earnings fell short of analyst expectations, leading to the sharp decline in share price.

The biotechnology company, which specializes in RNA interference therapeutics, reported total revenues of $594.2 million for Q1 2025, representing a 20% increase compared to the same period last year. This growth was primarily driven by a 28% year-over-year increase in net product revenues, which reached $468.5 million. However, the company's bottom line disappointed investors.

Alnylam reported a GAAP net loss of $57.5 million, or $0.44 per share, for the quarter. On an adjusted basis, the company posted a loss of $0.01 per share, which was significantly wider than the $0.56 per share profit analysts had expected. This earnings miss appears to be the main catalyst for the stock's decline.

Despite the weak earnings, Alnylam reiterated its full-year 2025 financial guidance, maintaining its projection for total net product revenues between $2.05 billion and $2.25 billion. The company also reaffirmed its goal of achieving profitability on a non-GAAP operating income basis for the full year.

While Alnylam's revenue growth and product pipeline progress were positive, the market's reaction suggests that investors were primarily focused on the bottom-line performance. The significant earnings miss has raised concerns about the company's ability to translate its expanding sales into profitability, at least in the near term.