Alnylam, Takeda, sign $1B development deal

Alnylam Pharmaceuticals Inc. has inked a $1 billion drug development alliance with a Japanese pharmaceutical giant, with a focus on developing RNAi therapeutics.

The deal between Cambridge, Mass.-based Alnylam (Nasdaq: ALNY) and Takeda Pharmaceutical Company Ltd. is being billed as the first between an RNAi company and an Asian pharmaceutical company, with the potential to expand RNAi treatments globally.

RNAi is a process that occurs in the body naturally. Scientists believe they can harness RNAi to turn off bad genes that cause disease.

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As part of the agreement, Takeda will be Alnylam's strategic partner for RNAi therapeutics over five years. Takeda also gains a right of first negotiation to develop and sell most Alnylam RNAi drug development programs for the Asian market. Alnylam also can opt in to help jointly develop and sell Takeda RNAi treatments in the United States, split 50-50 between the two parties.

Alnylam will make $150 million in upfront cash and technology-transfer payments, covering a nonexclusive license for drugs in two treatment areas. Alnylam also stands to gain additional money if the partnership is expanded or if research and development milestones are met.

Takeda's alliance with Alnylam also represents its second major push into the Massachusetts biotechnology industry marketplace in recent months.

In April, Takeda announced it would pay $8.8 billion for Millennium Pharmaceuticals Inc. in Cambridge (Nasdaq: MLNM), and make that 1,000-employee company a standalone Takeda subsidiary.