Alnylam Pharmaceuticals (ALNY)’s ALNY stock is up 30% pre-market today after Genzyme Corp., the biotech unit of French drug giant Sanofi SA (SAN.FR), announced it was buying a 12% stake in the company.

The merger would help Sanofi improve its drug pipeline at a purchase price in ALNY worth $700 million.

The partnership pushes both companies forward as they aim to better research into creating drugs to treat types of genetic diseases.

The deal is a big win for Sanofi, which has struggled in the past with keeping patents for some of its more popular drugs. (via the Wall Street Journal)

Since taking over in December 2008, Chief Executive Christopher Viehbacher has pledged to rekindle growth by steering Sanofi into new areas of business such as consumer health, animal products and biotech. Now, the onus is on Sanofi to prove it can revive growth and that its new strategy can pay off.

The rejection last month by U.S. regulators of its new multiple-sclerosis drug, Lemtrada, one of the main drivers of Sanofi’s $20 billion takeover of Genzyme in 2011, has also added pressure on the French company to replenish its new drug pipeline.

The new deal will help Sanofi strengthen its research efforts.

For Alnylam, the biopharmaceutical company based in Massasschusetts, funding from Genzyme will help it spearhead new research and produce new drugs.

ALNY stock is up 228% since this time last year.