"These agreements with Sigma validate the impact of RNAi on basic and applied life sciences as well as market potential of the application of RNAi within traditional drug discovery," said Sara Cunningham, chief executive officer of Benitec, said.
Under the terms of the agreement, Benitec will receive more than $4.5 million (€3.7 million)from the equity and licensing transactions, and Sigma will obtain an exclusive license to Benitec's intellectual property in the research reagent market.
In return for an exclusive license in the research reagent field, Sigma will make an initial payment of $2.0 million as well as continuing royalties on product sales and sublicensee revenue.
Sigma are also set to receive a license in the research reagent field to patents co-owned by Benitec and Commonwealth Scientific and Industrial Research Organisation (CSIRO) of Australia for its solely owned commercial rights to RNAi in "non-human applications," including its use in plants, animals, and insects.
Sigma-Aldrich has put in place a major intellectual property portfolio in RNAi, which aims to capitalise on the tool's potential as a therapeutic application within the biopharmaceutical industry.
Sigma-Aldrich, a supplier of biochemical reagents and kits used in life sciences research, has recently formed a collaboration with The RNAi Consortium (TRC).
Along with the acquisition of Proligo and the securing of licenses to key RNAi intellectual property from MIT, Alnylam, Oxford BioMedica and now Benitec, the company has made great strides in establishing this part of their business.
RNA interference (RNAi) holds great potential for one in its ability to treat disease at the genetic level, targeting the root of the disorder. It is a natural, selective process for turning off genes.
It is triggered by short interfering RNA (siRNA) molecules that engage a group of cellular proteins, known as RISC (RNA induced silencing complex).
The RISC guides the siRNA to its target messenger RNA (mRNA, the messenger between DNA and proteins) by complementary base pairing for the targeted break-up of the mRNA thus halting protein expression or viral replication. The RISC-siRNA-complex binds and cleaves multiple mRNA molecules in a catalytic fashion.
The stake in Benetic, worth $2.5 million, will be made in two stages. Sigma has already purchased shares of Benitec for $1.7 million and will purchase additional shares for $0.8 million at a later date.