Sanofi's (SNY) Genzyme Exercises Right for 344.5K Shares of Alnylam (ALNY)

March 26, 2014 8:07 AM EDT Send to a Friend
Alnylam Pharmaceuticals, Inc. (Nasdaq: ALNY) announced that Genzyme, a Sanofi company (NYSE: SNY), has exercised its right to purchase 344,448 unregistered shares of Alnylam’s common stock in accordance with the terms of an investor rights agreement between Alnylam and Genzyme, dated January 11, 2014. These shares became available for purchase by Genzyme as a result of Alnylam’s issuance of shares of common stock to Merck in connection with Alnylam’s acquisition of Sirna Therapeutics. Under the investor rights agreement, Genzyme has the right to purchase additional shares to maintain its ownership percentage of the company’s common stock. On March 25, 2014, Genzyme purchased these additional shares at a purchase price of $66.88, the closing price of Alnylam’s stock that day, and paid the company approximately $23.0 million. The exercise of this right to purchase the maximum number of additional shares under the terms of the investor rights agreement allows Genzyme to maintain its current ownership level of Alnylam common stock of approximately 12%.

In January 2014, Alnylam and Genzyme formed a collaboration for the development and commercialization of RNAi therapeutics as genetic medicines. In partial consideration for the rights granted to Genzyme under the alliance and pursuant to the terms of a stock purchase agreement, Genzyme purchased 8,766,338 shares of newly issued Alnylam common stock at a purchase price of approximately $80, and paid the company $700.0 million in aggregate cash consideration.

“Our transformational alliance with Genzyme is off to a great start, and we look forward to a close strategic relationship for many years to come,” said Laurence Reid, Ph.D., Senior Vice President and Chief Business Officer of Alnylam. “This additional investment in Alnylam represents a continued endorsement of their commitment to our collaborative efforts as we work together to develop and commercialize RNAi therapeutics as genetic medicines.”


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