Monday, July 9, 2007

Alnylam RNAi deal with Roche worth possible $1B

Cambridge-based Alnylam Pharmaceuticals Inc. reports it has signed a licensing deal worth up to $1 billion with Swiss medical technology giant Roche Holding AG.

Alnylam has agreed to grant Roche a non-exclusive license to its RNA-interference (RNAi) technology for developing new drugs for cancer as well as respiratory, metabolic and liver diseases, officials said. Roche also plans to buy Alnylam's research facility in Kulmbach, Germany, pending regulatory approval.

RNAi drugs are designed to silence the expression of disease-causing genes.

Under the deal, Roche will provide Alnylam an upfront payment of $288.5 million. Also, Roche Venture Fund will purchase $42.5 million in shares of Alnylam common stock, according to the companies.

The deal, expected to close within 30 days, could be worth more than $1 billion due to potential milestone payments for products developed under the agreement, the companies said. It would be a huge payday for Alnylam, a biotech with 122 employees that reported a 2006 net loss of $34.6 million on revenue of $26.9 million.