Genzyme buys 12% stake in pharma firm

FILE PHOTO The exterior of the Genzyme facility in Framingham

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By Rick Saia

Biotech giant Genzyme has bought a 12-percent stake in Cambridge-based Alnylam Pharmaceuticals in an investment valued at $700 million, Genzyme announced today.

Genzyme, which is also based in Cambridge and has operations in Framingham, announced the investment as part of a broader agreement with Alnylam to develop and commercialize treatments for rare genetic diseases. As part of the agreement, Genzyme is gaining rights to commercialize three Alnylam products.

Specifically, the two firms will co-develop and co-commercialize Alnylam’s ALN-TTRsc, a product in Phase 2 development for the treatment of familial amyloid cardiomyopathy, in North America and Western Europe, while Genzyme will market the product elsewhere, the Genzyme statement said.

In addition, Genzyme will gain the rights to two additional Alnylam products after completion of early clinical trials and be able to choose between full global rights or co-commercialization rights, depending on the product.

Also, Genzyme will have the option up until 2020, and possibly through 2021, to develop and commercialize outside North America and Western Europe all products being developed to treat rare genetic diseases from Alnylam's pipeline.

Alnylam retains its rights to co-develop and co-commercialize its genetic medicine pipeline in the two regions.

Genzyme’s $700 million investment is priced at approximately $80 per share, which represents a 27 percent premium as compared to Alnylam’s average share price over the last 30 days, Genzyme said. In addition, Alnylam will receive research and development funding, starting Jan. 1, 2015, for programs in which Genzyme has elected to opt-in to develop and commercialize. Further, Alnylam is eligible to receive milestones and royalties.

This transaction has been approved by the boards of both companies, and is subject to customary closing conditions and clearances under federal law, Genzyme said.

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