8-KMaterial Agreements

ALNYLAM PHARMACEUTICALS, INC. 8-K Report, Material Agreement (Sep 26, 2006)

Filed September 26, 2006For Securities:ALNY

Summary

Alnylam Pharmaceuticals, Inc. (ALNY) announced a significant material definitive agreement on September 26, 2006, with Biogen Idec Inc. (Biogen Idec) through an 8-K filing. This collaboration focuses on the discovery and development of novel therapeutics utilizing RNA interference (RNAi) technology specifically for the treatment of progressive multifocal leukoencephalopathy (PML). This partnership marks a key strategic move for Alnylam, leveraging its core RNAi technology in a targeted therapeutic area. The agreement grants Biogen Idec an exclusive license to distribute, market, and sell any resulting RNAi therapeutics for PML. Importantly, Biogen Idec will fully fund all research and development activities, and has provided Alnylam with an upfront payment of $5.0 million. Further financial benefits for Alnylam include potential future milestone and royalty payments contingent on the successful development and commercialization of products arising from this collaboration. This structure provides Alnylam with immediate capital and aligns incentives for future success.

Key Highlights

  • 1Alnylam Pharmaceuticals entered into a Collaboration and License Agreement with Biogen Idec Inc.
  • 2The collaboration targets the discovery and development of RNA interference (RNAi) therapeutics for Progressive Multifocal Leukoencephalopathy (PML).
  • 3Alnylam grants Biogen Idec an exclusive license to distribute, market, and sell RNAi therapeutics for PML.
  • 4Biogen Idec will fund all research and development activities related to the collaboration.
  • 5Alnylam received an upfront payment of $5.0 million from Biogen Idec.
  • 6The agreement includes potential future milestone and royalty payments for Alnylam, contingent on successful product development and commercialization.
  • 7The agreement allows for termination under specific conditions, including breach of obligations or without cause by Biogen Idec on a country-by-country basis.

Frequently Asked Questions

The collaboration is focused on the discovery and development of therapeutics based on RNA interference (RNAi) technology for the potential treatment of progressive multifocal leukoencephalopathy (PML).

Alnylam received an upfront payment of $5.0 million from Biogen Idec. Additionally, Alnylam is eligible to receive future milestone payments and royalties if a product resulting from the collaboration is successfully developed and commercialized.

Biogen Idec has been granted an exclusive license to distribute, market, and sell any RNAi therapeutics developed for the treatment of PML under this collaboration. Biogen Idec is also responsible for funding all research and development activities.

The agreement can be terminated if either party breaches its obligations. Biogen Idec also has the right to terminate the agreement without cause on a country-by-country basis with 90 days' notice. The agreement remains in effect until all payment obligations expire, unless terminated earlier.