CAMBRIDGE, Mass. - Biogen Inc. (NASDAQ:BIIB) has reached a definitive agreement to acquire Human Immunology Biosciences (HI-Bio™), a clinical-stage biotech company, for $1.15 billion upfront, with an additional $650 million in potential milestone payments. This acquisition, anticipated to close in the third quarter of 2024, is set to enhance Biogen's portfolio in immunology and rare diseases.
HI-Bio's lead asset, felzartamab, is an anti-CD38 monoclonal antibody with Breakthrough Therapy Designation (BTD) and Orphan Drug Designation (ODD) from the U.S. FDA for primary membranous nephropathy (PMN) treatment and ODD for antibody-mediated rejection (AMR) in kidney transplant recipients. Felzartamab has shown promise in Phase 2 studies for PMN, AMR, and IgA nephropathy (IgAN), with plans to progress to Phase 3 trials.
Dr. Priya Singhal, Head of Development at Biogen, stated that felzartamab's impact on key biomarkers and clinical endpoints in renal diseases makes it a strategic addition to their portfolio. The acquisition will not affect Biogen's 2024 financial guidance, and the company plans to finance the purchase with cash on hand and potentially through its revolving credit agreement.
HI-Bio CEO, Dr. Travis Murdoch, expressed enthusiasm for joining forces with Biogen to expedite the development of new therapies for severe immune-mediated diseases. Biogen aims to retain HI-Bio's expertise and establish a team in the San Francisco Bay Area to expand its efforts in immune-mediated diseases.
Felzartamab, initially developed by MorphoSys AG for multiple myeloma, has been licensed by HI-Bio for development and commercialization in all indications except China. The antibody is designed to deplete CD38+ cells, which are implicated in various immune-mediated diseases.
The acquisition is subject to customary closing conditions, including regulatory approvals. Legal advisory for Biogen was provided by Covington & Burling LLP, while Goldman Sachs & Co. LLC and BofA Securities, Inc. served as financial advisors, and Goodwin Procter LLP as legal advisor to HI-Bio.
This article is based on a press release statement.
InvestingPro Insights
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