Regeneron, Alnylam Strike $1B Collaboration For RNAi-based Therapeutics

In a biotech tie-up, Regeneron Pharmaceuticals Inc (NASDAQ: REGN) announced a collaboration agreement Monday with Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY).

Regeneron will also make an equity investment in Alnylam as part of the deal.

What Happened

Regeneron and Alnylam said they will exclusively collaborate on discovering, developing and commercializing new RNA interface — or RNAi — therapeutics for a broad range of disease targets expressed in the eye and central nervous system. The companies will also work on therapies for a select number of targets expressed in the liver.

The collaboration will build on Alnylam's recent preclinical data showing potent and highly durable delivery of RNAi therapeutics to achieve target gene silencing in the eye and the CNS as well as Regeneron's VelociSuite technologies and capabilities, according to the companies.

The agreement has Regeneron paying $400 million upfront to Alnylam and buying up to $400 million worth of Alnylam stock at $90 per share. Additionally, Alnylam stands to receive an additional $200 million in milestone payments upon achieving certain criteria during early development for the eye and CNS programs.

The collaboration also covers a planned joint effort to evaluate Regeneron's Phase 1 asset pozelimab and Alnylam's Phase 2 asset cemdisiran, with both companies sharing equally in investment and profits on the monotherapy program.

Alnylam will receive royalties on the combination program.

What's Next

During the initial five-year discovery period, which has an option for an extension, the companies said they plan to advance programs directed to 30 targets and advance many into clinical development.

For a program initiation, Regeneron will pay Alnylam $2.5 million in funding and an incremental $2.5 million for lead candidate identification, translating to a potential $30 million in annual discovery funding to Alnylam.

Regeneron shares were down 2.88 percent at $397.18 at the time of publication Monday, while Alnylam shares were falling 1.21 percent to $91.67.

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