Medtronic and Alnylam Pharmaceuticals to Collaborate on Potential Trea

Medtronic and Alnylam Pharmaceuticals to Collaborate on Potential Treatments for Major Neurodegenerative Diseases

    Business Editors/Health/Medical Writers

    MINNEAPOLIS & CAMBRIDGE, Mass.--(BUSINESS WIRE)--Feb. 9, 2005--

Alliance will focus on drug-device combinations incorporating RNAi therapeutics
    Medtronic, Inc. (NYSE:MDT), the world's leading medical technology company, and Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), a leading RNAi therapeutics company, today announced that they will collaborate to pursue potential therapies designed to treat neurodegenerative disorders such as Huntington's, Alzheimer's and Parkinson's disease.
    The collaboration will focus on developing novel drug-device combinations incorporating RNAi therapeutics. RNAi, or RNA interference, refers to a technique for silencing targeted genes in a cell, inhibiting their ability to produce particular proteins involved in specific diseases. Initial development will focus on delivering RNAi therapeutics to specific areas of the brain using novel infusion systems.
    Under terms of the collaboration agreement, after successful completion of an initial joint technology development program and a joint decision to initiate product development, Alnylam would be responsible for the discovery and early development of candidate RNAi therapeutics, and Medtronic would be responsible for late-stage development and commercialization of any drug-device products that result. Medtronic also would adapt or develop medical devices to deliver the candidate RNAi therapeutics to targeted locations in the nervous system.
    "We have proven expertise in delivering targeted therapies throughout the body, while Alnylam brings leadership in the evolving science of RNAi technology," said Stephen Oesterle, M.D., Medtronic senior vice president, medicine and technology. "Together, we are well positioned to explore drug-device combinations with a goal of discovering better ways to treat serious neurodegenerative diseases."
    Under terms of the collaboration agreement, after successful completion of an initial joint technology development program and a joint decision to initiate product development, Medtronic would make an initial equity investment in Alnylam and could make additional investments upon successful completion of certain pre-defined milestones. Alnylam would then be eligible to receive additional cash milestone payments for each product developed, and royalties on sales of any RNAi therapeutic component of novel drug-device combinations that result from the collaboration.
    "We are excited to be working with the world's leading medical device company, Medtronic, as we pursue RNAi therapeutics for neurodegenerative diseases that have grave consequences for patients and their families," said John Maraganore, Ph.D., president and chief executive officer of Alnylam. "We believe that this collaboration with Medtronic, as one of the new collaborations that Alnylam expects to form in 2005, will provide a major boost in the exploration and development of RNAi therapeutics designed to treat important diseases."
    An estimated 17 million people worldwide, 5.7 million in the United States, are affected by Huntington's, Alzheimer's or Parkinson's disease.

    About RNA Interference (RNAi)

    RNA interference, or RNAi, is a naturally occurring mechanism within cells for selectively silencing and regulating specific genes. Since many diseases are caused by the inappropriate activity of specific genes, the ability to silence and regulate such genes selectively through RNAi could provide a means to treat a wide range of human diseases. The discovery of RNAi has been heralded by many as a major breakthrough, and the journal Science named RNAi the top scientific achievement of 2002, as well as one of the top 10 scientific advances of 2003.

    About Medtronic

    Medtronic, Inc., headquartered in Minneapolis, is the world's leading medical technology company, providing lifelong solutions for people with chronic disease. Its website is www.medtronic.com.

    About Alnylam

    Alnylam is a biopharmaceutical company seeking to develop and commercialize novel therapeutics based on RNA interference, or RNAi. Growing from its foundation as the world's first company focused on RNAi therapeutics, the company's leadership in the field of RNAi is supported by its preeminent founders and advisors and its strengths in fundamental patents, technology, and know-how that underlie the commercialization of RNAi therapeutics. Alnylam is developing a pipeline of RNAi products using Direct RNAi(TM) to treat ocular, central nervous system, and respiratory diseases and Systemic RNAi(TM) to treat a broad range of diseases, including oncology, metabolic, and autoimmune diseases. The company's global headquarters are in Cambridge, Massachusetts. For additional information, please visit www.alnylam.com.

    Medtronic Forward-Looking Statement

    Any forward-looking statements are subject to risks and uncertainties such as those described in Medtronic's Annual Report on Form 10-K for the year ended April 30, 2004. Actual results may differ materially from anticipated results.

    Alnylam Forward-Looking Statement

    Various statements in this release concerning our future expectations, plans, prospects and future operating results constitute forward-looking statements for the purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including risks related to: our approach to discover and develop novel drugs, which is unproven and may never lead to marketable products; our ability to obtain additional funding to support our business activities; our dependence on third parties for development, manufacture, marketing, sales and distribution of our products; the successful development of products, all of which are in early stages of development; obtaining regulatory approval for products; competition from others using technology similar to ours and others developing products for similar uses; obtaining, maintaining and protecting intellectual property utilized by our products; and our short operating history; as well as those risks more fully discussed in the "Certain Factors That May Affect Future Results" section of our most recent Form 10-Q filed with the Securities and Exchange Commission. In addition, any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. We do not assume any obligation to update any forward-looking statements.

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CONTACT: Medtronic, Inc., Minneapolis Investor Relations: Chris King, 763-505-2695 or Public Relations: Rich Fischer, 763-505-2975 or for Alnylam: Stern Investor Relations, Inc. Lilian Stern, 212-362-1200 or KMorris PR Kathryn Morris, 845-635-9828

KEYWORD: MINNESOTA MASSACHUSETTS INDUSTRY KEYWORD: MEDICAL PHARMACEUTICAL MEDICAL DEVICES BIOTECHNOLOGY MARKETING AGREEMENTS SOURCE: Medtronic, Inc.

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