Genzyme, Isis form Strategic Alliance

Genzyme Corp. and Isis Pharmaceuticals, Inc. have formed a strategic alliance in which Genzyme will develop and commercialize mipomersen, Isis’ lipid-lowering treatment for high-risk cardiovascular patients that uses novel antisense technology. As part of the alliance, Genzyme will have preferred access to future Isis drugs for CNS and certain rare diseases.

Genzyme will buy a $150 million equity investment in Isis and pay a $175 million up front for a mipomersen license fee. Isis may gain as much as $825 million in developmental/regulatory milestones, another $750 million in commercial milestones, and is also eligible for significant royalties on the project. Some analysts estimate mipomersen could have a $2 billion peak annual market. The drug is currently in Phase III trials.

“This alliance is an excellent strategic fit for Genzyme’s business model and culture,” said Henri A. Termeer, Genzyme’s chairman and chief executive officer. “Mipomersen is an innovative approach to addressing a real unmet medical need, and we believe it could prove to be the most effective lipid-lowering agent for high risk patients for whom conventional therapies are not sufficient. This potential blockbuster is a very Genzyme-like product. It provides significant benefit over the standard of care, targets a well-defined and severely ill patient population, and offers meaningful revenue and earnings potential.”

“We feel that Genzyme is the perfect partner for Isis and for mipomersen,” said Stanley Crooke, chairman, president and chief executive officer of Isis. “We have been very pleased with the quality and depth of interest in this flagship drug in our cardiovascular pipeline, and as we evaluated the licensing terms from various parties, we felt that Genzyme would value mipomersen appropriately as a pipeline-transforming product. This commitment to mipomersen, along with Genzyme’s strength in drug development and marketing, made this relationship strategically compelling.”