The biotechnology giant is acquiring Human Immunology Biosciences in an effort to build out its immunology portfolio.
Biotechnology giant Biogen $BIIB said on Wednesday that it is acquiring immune drug developer Human Immunology Biosciences (HI-Bio) to boost its late-stage pipeline and immunology portfolio. Biogen has agreed to a $1.15 billion upfront payment and up to $650 million in additional payments if certain milestones are met.
The acquisition is part of Biogen’s dealmaking effort as sales of its multiple sclerosis drug business decline and sales of its groundbreaking Alzheimer’s drug begin picking up. The company launched Leqembi, the first drug to slow the progression of Alzheimer’s, last year. It generated $19 million in sales in the first quarter of 2024, outperforming analyst expectations of $11 million.
Biogen CEO Chris Viehbacher told Bloomberg this month that the company “could spend a couple of billion this year” on new deals.
With the acquisition of HI-Bio, Biogen brings felzartamab — an antibody that holds potential for treating rare immune-related conditions — into its late-stage pipeline. Experiments involving the antibody have completed phase 2 trials for mitigating rejection in kidney transplant recipients, among other uses. Biogen plans to advance the treatment to phase 3 trials.
“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 Biogen Head of Development Priya Singhal in a press release.
Felzartamab has received Orphan Drug Designation (ODD) from the U.S. Food and Drug Administration (FDA), referring to drugs that address a condition affecting fewer than 200,000 persons in the United States. Medications treating orphan or rare diseases are some of the most expensive drugs on the market. Pharmaceutical companies leverage a lack of alternative treatments for these diseases as justification for their high prices.
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