Alexion inks deal with Moderna for rare diseases; 'deal of the year' say analysts

US drugmaker Alexion Pharmaceuticals (Nasdaq: ALXN) has signed an exclusive strategic agreement with privately-held USA-based start-up Moderna Therapeutics for the discovery and development of messenger RNA Therapeutic to treat rare diseases.

Under the terms of the deal, Alexion will make an upfront payment to Moderna of $100 million to purchase 10 product options to develop and commercialize treatments for rare diseases with Moderna’s mRNA Therapeutics platform. While the deal is seen as a serious positive for Moderna (see below), Alexion investors were not to so rapturous, with the firm’s shares falling 3% to $130.61 yesterday.

Alexion will lead the discovery, development and commercialization of the treatments produced through this broad, long-term strategic agreement, while Moderna will retain responsibility for the design and manufacture of the messenger RNA against selected targets. Following option exercise by Alexion, Moderna will be entitled to drug development and commercial milestone payments, as well as high single to double digit royalties on commercial sales. In addition, Alexion has made a $25 million preferred equity investment into Moderna.