Biotech Values

[DewDiligence]

>> [Alnylam] is a low-risk partnership for them [Merck].<<

To a degree. But I think Merck’s commitment to Alnylam is stronger than some posters here and on Yahoo think it is.

Whenever you create a joint venture, as Merck has done with Alnylam, there’s a substantial investment in administration, such as the joint steering committees to oversee clinical development. Moreover, Merck’s out of pocket costs will include half the total expenditures on development, which will likely outweigh the $19.5M in potential milestones payments to Alnylam.

If Merck had really wanted a low-risk deal with Alnylam, they could have angled for an option arrangement along the lines of Roche’s deal with ARQL.