Genzyme to gain rights to certain Alnylam rare disease pipeline products

French drug major Sanofi’s (Euronext: SAN) US biotech subsidiary Genzyme and Alnylam Pharmaceuticals (Nasdaq: ALNY) have significantly expanded their strategic agreement to develop and commercialize treatments for rare genetic diseases. Sanofi’s shares dipped 1.5% to 72.87 euros in mid-morning trading.

For an upfront payment of $22.5 million as well as milestones and potential royalties, Genzyme will have significant rights to Alnylam's portfolio of clinical and preclinical stage drug candidates. Alnylam will retain most product rights in North America and Western Europe, and will have significantly expanded development and commercial opportunities for its genetic medicine pipeline through Genzyme's established global infrastructure in rare diseases.

The Genzyme alliance, which provides the latter with patisiran, a therapy for a rare life-threatening disease that damages the nervous system, as well as the rights to three other drugs, is valued at well over $1 billion, including equity, R&D funding, and potential milestone payments, according to Alnylam.