Recently, Alnylam Pharmaceuticals, Inc. (ALNY) earned $20 million as technology transfer payment from Takeda Pharmaceutical. The amount was paid by Takeda as part of the strategic alliance formed by the companies in 2008. The deal is potentially valued at $1 billion.
In May 2008, Alnylam established a five-year strategic platform alliance with Japanese company Takeda Pharmaceuticals Company Ltd. for RNA (ribo nucleic acid) interference (RNAi) therapeutics in the field of oncology and metabolic disease with the right to expand the number of therapeutic fields.
RNA interference is a natural cellular process for selectively turning off the activity of genes. By harnessing this natural process, Alnylam is developing novel therapeutics that will utilize the natural RNAi mechanism to selectively suppress genes that produce proteins that play harmful roles in diseases.
The payment of $20 million to Alnylam pertains to the achievement of certain pre-defined objectives in the transfer of Alnylam’s platform technology, including documents, materials, and know-how, to Takeda for developing RNAi therapeutics.
Under the deal, Alnylam has already received $120 million in upfront and technology transfer payments from Takeda. Alnylam is eligible to receive a further $10 million in near-term technology transfer payments in addition to the current $20 million payment. Furthermore, Alnylam is also entitled to receive significant milestones and royalties related to the advancement of RNAi therapeutic products by Takeda. The deal allows Alnylam to retain certain product opt-in rights in the U.S. market.
Apart from the deal with Takeda, the company has entered into collaborations or deals with big pharmaceutical players such as Novartis (NVS), Biogen Idec (BIIB), Roche (RHHBY) to further develop and utilize its core technology. We believe Alnylam will continue to form new alliances with leading pharmaceutical and biotech companies in future.
Currently, we are Neutral on Alnylam Pharmaceuticals.
Read the full analyst report on “ALNY”
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Read the full analyst report on “BIIB”
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