Alnylam Pharmaceuticals has pocketed around $1.2 million after Novartis fully exercised its right to purchase an additional 65,922 unregistered shares of Alnylam's common stock, pursuant to the companies' 2005 drug-discovery and -development deal, Novartis said this week.
Novartis, which Alnylam lists as its second biggest shareholder, said its decision to purchase the additional stock, for which it paid $17.50 per share, allows it to maintain its current 13.4 percent stake in Alnylam.
In September 2005, the companies first announced that they had forged a three-year alliance to develop drugs based on Alnylam's RNAi technology (see RNAi News, 9/9/2005). As part of that arrangement, Novartis took what was then a 19.9 percent stake in Alnylam.
Last summer, Alnylam announced that the arrangement had been extended for an additional year and will run through October 2009 (see RNAi News, 7/17/2008).
Shares in Alnylam closed down 1.34 percent at $18.37 on Wednesday.