(Bloomberg) -- Novartis AG agreed to work with Alnylam Pharmaceuticals Inc. to develop a treatment that can restore liver function and offer an alternative to transplants.
The U.S. biotech company's technology will be used to inhibit a target identified by Novartis researchers, the Swiss company said Thursday, without disclosing financial details.
Alnylam, which turned a Nobel Prize-winning concept called RNA interference into treatments for rare genetic conditions, has been a subject of takeover speculation. Novartis, having just sold a $21 billion stake in rival Roche Holding AG, could use the cash to buy a biotech and Alnylam has been on the potential target list.
The U.S. company's longtime Chief Executive Officer John Maraganore also stepped down at year-end.
Read More: Novartis Has a Big Pile of Cash and Investors Wanting Action
During the three-year collaboration, Alnylam will develop and test molecules called small interfering RNAs, or siRNAs, using target-specific assays developed by Novartis. Once a possible drug is identified, Novartis will conduct the development and clinical research.
Novartis shares were little changed in early Zurich trading.
About one million people die of end-stage liver disease worldwide every year because they progressively lose critical liver function. Liver transplantation is the only option at the moment, but it's an invasive procedure and there is a limited supply of organs.
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