Pharma BD Deal Intelligence

Roche Holding AG / Mirus Bio Corporation

2008 · Acquisition/Merger · $125M · Complete

Roche paid $125M for Mirus Bio's RNAi therapeutics arm in 2008, then abandoned the field entirely two years later—transferring the assets, Madison site, and staff to Arrowhead Research for a nominal $50,000 note. No Roche-derived RNAi product from the deal ever reached approval.

WRONG BY 65 POINTS

Roche paid $125M for Mirus Bio's RNAi therapeutics arm in 2008 and abandoned the entire RNAi field just two years later, giving the assets, Madison site, and staff away to Arrowhead Research for a nominal $50,000 note plus minority equity.

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The coverage arc

Jul 22, 2008 GenomeWeb Bullish

GenomeWeb described the deal as Roche 'expanding its stable of RNAi delivery technologies,' building on the prior Alnylam alliance to assemble the broadest…

Oct 21, 2011 GEN (Genetic Engineering & Biotechnology News) Bearish

Three-year postscript: Roche transferred the former Mirus Bio Madison, WI facility, DPC platform, ~40 scientists and IP to Arrowhead in 2011 after exiting RNAi…

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RNAi delivery, dynamic polyconjugate; transfection reagents spun out as Mirus Bio LLC

Did it work? Outcome assessment

Roche paid $125M for Mirus Bio's RNAi therapeutics arm in 2008 and abandoned the entire RNAi field just two years later, giving the assets, Madison site, and staff away to Arrowhead Research for a nominal $50,000 note plus minority equity.

Strategic verdict
Failed to Achieve

Key facts

Disease & market context

RNAi Therapeutics — siRNA Delivery Platform

Disease Overview

RNA interference (RNAi) therapeutics use small interfering RNAs (siRNAs) to silence disease-causing genes — but in 2008 the field's central bottleneck was systemic delivery: getting siRNA past nucleases, into the right tissue, and across the cell membrane. Hepatocyte-targeted delivery via the liver's GalNAc-asialoglycoprotein receptor and lipid nanoparticle (LNP/SNALP) systems were the leading approaches.

Competitive Landscape

In 2008 the RNAi delivery race featured Alnylam (GalNAc conjugates, broad IP), Tekmira/Protiva (SNALP/LNP), Silence Therapeutics (AtuPLEX), and Mirus Bio (Dynamic PolyConjugates — small flexible polymer particles for hepatocyte siRNA delivery developed by Jon Wolff and Dave Rozema). Big pharma was racing to lock in delivery: Roche signed a major Alnylam alliance in July 2007, Merck acquired Sirna for $1.1B in 2006, Pfizer licensed DPCs non-exclusively, and AstraZeneca partnered with Silence. Roche's $125M Mirus Bio acquisition in July 2008 captured the DPC platform plus the Madison, Wisconsin team and spun the transfection-reagent business out as a standalone Mirus Bio LLC. Per analyst Dirk Haussecker, the price was steep but strategically transformative — Roche became the only company with both DPC and SNALP access through its Alnylam relationship, leaving Pfizer and Merck exposed. The narrative arc closed in 2011 when Roche exited RNAi entirely and transferred the Madison facility, DPC platform, ~40 scientists, and IP to Arrowhead Research, which still uses an evolved DPC ('TRiM') in its commercial-stage hepatology pipeline. Source: http://rnaitherapeutics.blogspot.com/2008/07/roche-nabs-mirus-bios-rnai-therapeutics.html

Related deals — scored

DealYearValueOutcome
Roche Holding AG / Mirus Bio Corporation (this deal)2008$125M10
Roche Holding AG / Chugai Pharmaceutical Co. Ltd.2002$1.4B100
Roche Holding AG / Ventana Medical Systems Inc.2008$3.4B88
Roche Holding AG / Corange Ltd. (Boehringer Mannheim Group)1997$11.0B88
Roche Holding AG / Ventana Medical Systems Inc.2007$3.4B88
Roche Holding AG / Foundation Medicine, Inc.2015$1.1B87
Roche Holding AG / Foundation Medicine, Inc.2018$5.3B85

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