Merck Looking To Become RNAi Technology Leader
Pharmaceutical giant Merck (MRK) shocked the biotechnology world today as the company announced it is buying little biotech Sirna Therapeutics (RNAI) for more than $1 billion. That figure is 100% more than Sirna’s market value.
This is another move by Merck to enter the new darling of the biotechnology industry, RNAi technology. Discovered by Andrew Fire and Craig Mello in 1998, which won them the Nobel Prize last month, RNAi is a new form of RNA, an acronym for RNA interference, that can turn off other genes much like an off switch.
Scientists are excited about the potential of RNAi as a new drug discovery tool, but some also believe that RNAi can be a drug in itself.
Central to the deal is Sirna’s drug candidate for macular degeneration currently in phase 2 clinical trials.
While some may believe the $1 billion price tag placed on Sirna might be expensive, Merck’s move places the company as one of the leaders in this new technological field of biotech research. It has a partnership with Alnylam Pharmaceuticals (ALNY), a company founded in 2002, and is currently advancing its own RNAi candidate for treating lung infections caused by Respiratory Syncytial Virus. Alnylam’s drug is currently in phase 1 trials.
Shares of Alnylam were already up more than 24% in after hours trading late Monday, and will surely see more gains at the opening bell on Tuesday.
_
Comments
Leave a Reply
You must be logged in to post a comment.