Biogen to acquire privately held Human Immunology Biosciences for $1.15 billion upfront

By Ciara Linnane

Biotech will pay up to $650 million in milestone payments on reaching certain development targets

Biogen Inc. said Wednesday it's acquiring privately held Human Immunology Biosciences for $1.15 billion upfront and up to $650 million in potential milestone payments in a move aimed at bolstering its immunology portfolio.

HI-Bio's lead asset felzartamab is a fully human anti-CD38 monoclonal antibody that has shown clinical proof of concept in treating rare immune-mediated indications, Biogen said in a statement.

The drug has received Breakthrough Therapy Designation and Orphan Drug Designation from the U.S. Food and Drug Administration as a treatment for primary membranous nephropathy, a type of kidney disease, suggesting the regulator believes it has promise.

It also has ODD as a treatment for antibody-mediated rejection in kidney transplant recipients. Phase 2 studies have been completed for both indications with plans to move to Phase 3. A Phase 2 trial as a treatment for IgA nephropathy is ongoing.

"We believe this late-stage asset, which has demonstrated impact on key biomarkers and clinical endpoints in three renal diseases with serious unmet needs, is a strategic addition to the Biogen portfolio as we continue to augment our pipeline and build on our expertise in immunology," said Dr. Priya Singhal, head of development at Biogen.

The acquisition is not expected to impact Biogen's guidance for 2024. The company has said it expects 2024 adjusted earnings per share of $15.00 to $16.00 and total revenue to decline by a low- to mid-single-digit percentage compared to 2023.

For more, read: Biogen's stock climbs as first-quarter profit tops estimates, Alzheimer's drug uptake improves

The company will fund the deal with cash and may draw on its revolving credit agreement. The deal is expected to close in the third quarter.

The stock was slightly lower premarket and has fallen 12% in the year to date, while the S&P 500 has gained 12%.

-Ciara Linnane

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

05-22-24 0836ET

Copyright (c) 2024 Dow Jones & Company, Inc.