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news.Roche and Alnylam Pharmaceuticals have struck deal worth up to $1 billion under which Roche will obtain a non-exclusive license to the US firm's technology platform for developing RNA interference therapeutics.
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The alliance will initially cover four therapeutic areas: oncology, respiratory diseases, metabolic diseases and certain liver diseases. Alnylam and Roche also will collaborate on RNAi drug discovery for one or more disease targets in these therapeutic areas.
In addition, Roche will acquire Alnylam’s European research site located in Kulmbach, Germany (Bavaria), subject to regulatory approval. This site will become Roche’s center of excellence for RNAi therapeutics discovery.
RNAi is a natural mechanism that the body uses to inhibit expression of certain genes. The companies claim that harnessing the activity of RNAi creates a direct opportunity to develop specific and potent drugs against diseases that are difficult to treat.
The alliance could be valued at over $1 billion in consideration of upfront payments, potential product milestone payments for multiple products and field expansion payments, 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 1.975 million shares of Alnylam common stock the Roche Venture Fund agreed to purchase at $21.50 per share, representing just less than 5% of Alnylam’s outstanding common stock.
Roche will also pay Alnylam milestones on products as they advance in development and commercialization as well as royalties on future sales of commercial products. Further, Roche may pay Alnylam field expansion payments to increase the number of therapeutic areas.