Alnylam wins $38.6m US pact

Alnylam Pharmaceuticals Inc. of Cambridge said yesterday that it has been awarded a $38.6 million government contract to develop RNAi therapeutics for biological threats.

Alnylam focuses on RNA interference, or RNAi, a naturally occurring mechanism within cells for selectively silencing and regulating specific genes; since many diseases are caused by the inappropriate activity of specific cells, the ability to silence genes selectively through RNAi has great potential for medical treatments.

Alnylam said the 33-month contract was awarded by the US Defense Threat Reduction Agency, and it calls for Alnylam to develop a broad spectrum RNAi antiviral therapeutic for the treatment of viral hemorrhagic fever.

Also yesterday, Alnylam said it has closed on its previously disclosed alliance with Roche.

In July, the company said Switzerland-based Roche licensed rights to Alnylam's gene-silencing technology. Roche is required to make aggregate payments to Alnylam of about $331 million including an upfront cash payment within 10 days of the closing. The Roche Venture Fund also bought about $42.5 million in Alnylam common stock.

Alnylam released its earnings yesterday, saying its second-quarter loss widened on higher operating expenses. The company lost $12.7 million, or 34 cents per share, compared with a loss of $9.9 million, or 31 cents per share, during the same period a year prior. The recent quarter included 5 cents per share in expense for stock-based compensation. Revenue rose to $9.1 million from $6 million. Operating expenses rose 49 percent to $18.8 million from $12.6 million. The jump was due mainly to higher research and development costs from for the company's preclinical and clinical programs. Shares of Alnylam rose 53 cents, or 2.1 percent, to $25.98.