8-KMaterial Agreements

ALNYLAM PHARMACEUTICALS, INC. 8-K Report, Material Agreement (Aug 20, 2020)

Filed August 20, 2020For Securities:ALNY

Summary

Alnylam Pharmaceuticals, Inc. (ALNY) announced a significant co-development agreement with affiliates of The Blackstone Group Inc., specifically Blackstone Life Sciences Advisors L.L.C. (Blackstone), on August 15, 2020. This strategic collaboration provides Alnylam with up to $150 million in funding to support the clinical development of two key cardiometabolic programs: vutrisiran and ALN-AGT. Blackstone's commitment includes up to $70 million for vutrisiran's HELIOS-B Phase 3 trial and has the option to fund up to $26 million for ALN-AGT's Phase 2 trial and up to $54 million for its Phase 3 trial. In exchange for this funding, Alnylam will pay Blackstone royalties on vutrisiran net sales and tranched payments on both vutrisiran and ALN-AGT upon regulatory approval, with the aggregate payment amount representing a multiple of Blackstone's investment. Alnylam retains full responsibility for the development and commercialization of both assets. This financing is expected to bolster Alnylam's progress in these promising therapeutic areas, while the agreement also includes provisions for a joint steering committee and termination clauses. Additionally, the company amended its existing credit agreement with Blackstone to include ALN-AGT intellectual property as collateral.

Key Highlights

  • 1Alnylam secured up to $150 million in co-development funding from Blackstone for vutrisiran and ALN-AGT programs.
  • 2Funding is earmarked for clinical development costs of vutrisiran (HELIOS-B Phase 3) and ALN-AGT (Phase 2 and Phase 3 trials).
  • 3Blackstone's funding for vutrisiran is a commitment of up to $70 million, with an option for ALN-AGT funding up to $80 million ($26M Phase 2, $54M Phase 3).
  • 4Alnylam will pay Blackstone a 1% royalty on vutrisiran net sales and tranched payments on both vutrisiran and ALN-AGT upon regulatory approvals.
  • 5The payment structure to Blackstone is tied to the amount of funding received and represents an agreed multiple of investment.
  • 6Alnylam retains sole responsibility for the development and commercialization of both vutrisiran and ALN-AGT.
  • 7The agreement includes a joint steering committee for governance and outlines termination rights for both parties.

Frequently Asked Questions

The primary purpose is to secure up to $150 million in funding from Blackstone to support the clinical development costs of Alnylam's cardiometabolic programs, vutrisiran and ALN-AGT. This financing will help advance these crucial late-stage and mid-stage clinical trials.

In exchange for the funding, Alnylam has agreed to pay Blackstone a 1% royalty on net sales of vutrisiran and tranched payments upon regulatory approval of vutrisiran and ALN-AGT. The total payment amount will be based on an agreed multiple of Blackstone's investment.

No, Alnylam retains sole responsibility for the development and commercialization of both vutrisiran and ALN-AGT. While a joint steering committee will govern the funding arrangement, ultimate control remains with Alnylam. Blackstone's involvement is primarily financial.

The First Amendment to the Credit Agreement, entered into in connection with the Funding Agreement, adds intellectual property related to ALN-AGT as collateral under the existing credit facility with Blackstone. This is a customary step to secure the broader financing relationship.