Regeneron Pharmaceuticals and Alnylam Pharmaceuticals announced a collaboration deal to discover, develop and commercialize treatments for the eye and central nervous system (CNS), as well as several targets expressed in the liver, utilizing RNA interference (RNAi).
Under the terms of the agreement, Regeneron is paying $400 million upfront to Alnylam and acquiring another $400 million in equity at a price per share of $90, or 4.44 million common shares. Alnylam will be eligible for up to another $200 million in milestone payments during early clinical development for the eye and CNS programs.
Alnylam plans to work exclusively with Regeneron to discover RNAi therapeutics for the two primary indications, eye and CNS diseases. Regeneron will lead development and marketing for programs that target the eye and Alnylam will be eligible for milestone payments and royalties. The two companies will work together to advance and alternate heading the CNS programs, with the lead group holding global development and commercial responsibility. For CNS programs, both companies will be able to participate equally in the other’s programs at the point of candidate selection.
Regeneron and Alnylam indicate they plan to advance programs directed to 30 targets, with many of them being advanced into clinical development during the initial five-year discovery period. That also includes an option to extend the partnership.
Regeneron will pay Alnylam $2.5 million in funding at the initiation of a program and another $2.5 million in annual discovery funding. This amounts to approximately $30 million in potential annual discovery funding to Alnylam.