Big pharma makes foray into gene silencing

Merck & Co has become the first drug major to make a significant alliance in the field of RNA interference, one of the hottest topics in drug discovery. The US firm has entered into collaboration with Alnylam Pharmaceuticals to develop RNAi-based technologies and therapeutics.

Remarkably for such an embryonic technology, the RNAi sector is in a state of flux at present. A scramble for intellectual property has resulted in new licensing agreements almost every week amongst the key players, and consolidation is already underway; Alnylam itself merged with Ribopharma earlier this year, while last month Genta acquired Salus Therapeutics.

In the latest deal, Merck​ and Alnylam will work together to advance the gene silencing technology and to develop RNAi-based therapeutics that selectively target genes involved in human diseases.

Under the terms of the collaboration, Merck will supply a series of validated drug targets to Alnylam​ and the latter company will develop RNAi compounds against them. Alnylam has responsibility for progressing these candidates through preclinical development and, thereafter, the two companies will decide on a strategy for further development with either Merck, Alnylam or both companies gaining marketing rights.

The development of drug discovery technologies will be an essential element of the alliance, and Merck and Alnylam will each commit resources and expertise to this effort.

Specific financial details have not been disclosed, but Merck will make an upfront and annual cash payments and also make an equity investment in Alnylam. An additional cash and equity tranche will be triggered by achievement of a pre-specified technology milestone.

Merck will also make further payments to Alnylam for each RNAi-based drug candidate that the US major wants to take on board, and will receive a co-exclusive license to Alnylam intellectual property for use in in vitro​ and in vivo​ target identification and validation.

Partnering with a pharmaceutical heavyweight such as Merck is a real coup for Alnylam as it jostles for the premier position in RNAi.

"We have recognized the leadership of Alnylam and their intellectual property in the promising field of RNA interference,"​ said Stephen Friend, senior vice president of Molecular Profiling and Cancer Research at Merck.