("Sanofi-Aventis Forms Alliance With Alnylam-Isis Venture" published at 6:29 a.m., EDT, incorrectly stated that the alliance would work on gene-based therapies in the first paragraph. The corrected version follows) DOW JONES NEWSWIRES Sanofi-Aventis SA (SNY, SAN.FR) has entered into an alliance with Regulus Therapeutics Inc. to discover, develop and commercialize therapies that target controllers of gene expression and initially will focus on fibrosis in a deal potentially valued at more than $750 million. The deal includes a $25 million upfront fee, a $10 million future equity investment and research support for three years, with an option to extend the support for an additional two years. The French drug company also receives an option for a broader technology alliance, which provides Regulus with certain development and commercialization rights and potentially an added $50 million. Regulus was formed in 2007 by joint owners Alnylam Pharmaceuticals Inc. (ALNY) and Isis Pharmaceuticals Inc. (ISIS). Alnylam and Isis each will receive $1.8 million, or 7.5%, from Regulus under the deal, as well as a similar percentage from any milestone payments. The deal comes as Sanofi has moved to bolster its alternative sources of growth while also focusing on an acquisition strategy around vaccines, generics and over-the-counter portfolios. Emerging markets and diabetes have been targets. Alnylam Chief Executive and Regulus Chairman John Maraganore said the partnership will enable "substantial funding" to advance microRNA therapeutics. In preclinical studies, Regulus has shown that modulating microRNAs can effectively regulate disease pathways and produce therapeutically beneficial results. Sanofi's American depositary shares closed Monday at $30.53 while Isis and Alnylam shares finished at $9.14 and $15.12, respectively. All were inactive premarket. -By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com
