Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of biotech Alnylam Pharmaceuticals (Nasdaq: ALNY) are dipping 10% today following the release of the company's fourth-quarter earnings results.

So what: As with most biotech companies, today's story has very little to do with the fact that Alnylam met Wall Street's estimates with a loss of $0.33 -- but has everything to do with its cash burn rate. In fiscal 2011, Alnylam burned through $89 million in cash. Its fiscal 2012 forecast anticipates that the company will end the year with "greater than $180 million at December 31, 2012." This implies a cash burn rate of up to $80 million more.

Now what: Alnylam has already had a huge run, doubling in price since late November. The RNAi therapeutics company currently has three experimental therapies in phase 1 clinical trials and one in phase 2 trials. Partnered with Cubist Pharmaceuticals (Nasdaq: CBST) to license the drug worldwide (excluding Asia), ALN-RSV01 is aimed at treating RSV infection in adults. With no other trials currently past phase 1, it's this RSV drug that holds all of the promise for Alnylam. Personally, I see downside potential for the stock given the rapid cash burn rate and the fact that a marketable drug still appears to be years away.

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