Roche, Alnylam Form RNAi Alliance

Roche and Alnylam Pharmaceuticals have entered into a major alliance in which Roche will obtain a non-exclusive license to Alnylam’s RNAi technology platform. The alliance will initially cover four therapeutic areas: oncology, respiratory diseases, metabolic diseases and certain liver diseases. The two companies will collaborate on RNAi drug discovery for one or more disease targets in these areas. Also, Roche will acquire Alnylam’s European research site in Kulmbach, Germany, which will become Roche’s Center of Excellence for RNAi drug discovery.

RNAi is a natural mechanism that the body uses to inhibit expression of certain genes. Using RNAi creates a direct opportunity to develop specific and potent drugs for hard to treat diseases.

“Alnylam has made significant advances in RNAi therapeutics, one of the most promising approaches to tomorrow’s healthcare technology. Working together with Alnylam provides us with new capabilities to target complex diseases within our focus areas,” said Lee E. Babiss, head of Roche Global Pharma Research. “Our mission is to find novel solutions for patients who suffer from difficult to treat diseases and we will be fully committed to this goal, together with our new colleagues located at the acquired site in Kulmbach.”

The alliance has a potential value in excess of $1 billion, including upfront payments, potential milestone payments for multiple products and field expansion payments, but excluding potential royalties on future sales of commercial products. Under the terms of the agreement, Roche will pay Alnylam $331 million in upfront cash payments and equity investment, including 1.9 million shares of Alnylam common stock, representing approximately 5% of Alnylam’s outstanding common stock.