CAMBRIDGE, Mass. – Biogen Inc. (NASDAQ:BIIB), a biotechnology leader, announced today the completion of its acquisition of Human Immunology Biosciences (HI-Bio™), a clinical-stage biotech company focused on immune-mediated diseases. The deal marks the integration of HI-Bio's felzartamab, a late-stage therapeutic candidate, into Biogen's immunology pipeline.
Felzartamab, a monoclonal antibody targeting CD38, has shown promise in Phase 2 clinical studies for diseases such as IgA nephropathy (IgAN), antibody-mediated rejection (AMR) in kidney transplants, and primary membranous nephropathy (PMN). Positive interim results from these studies were recently presented at the European Renal Association Congress and published in the New England Journal of Medicine.
Dr. Priya Singhal, Head of Development at Biogen, expressed enthusiasm for the acquisition, noting the potential to advance felzartamab into Phase 3 trials and address unmet needs in rare diseases. Meanwhile, Dr. Travis Murdoch, CEO of HI-Bio, emphasized the shared values and missions of the two companies in advancing patient care.
AMR is a major cause of kidney transplant failure, affecting approximately 12% of recipients annually in the U.S., while PMN and IgAN are rare and common kidney conditions, respectively, with limited treatment options. Felzartamab's development for these conditions could provide new therapeutic avenues for patients.
Biogen, founded in 1978, has a history of pioneering innovative therapies and is committed to transforming patient lives through new medicines. The acquisition of HI-Bio is expected to bolster Biogen's immunology portfolio and support its long-term growth strategy.
The financial terms of the acquisition were not disclosed. Felzartamab is still under investigation and has not been approved by regulatory authorities. This news is based on a press release statement from Biogen Inc.
In other recent news, Biogen Inc. and Eisai Co (OTC:ESAIY) Ltd have launched their Alzheimer's treatment, Leqembi, in China, marking the drug's introduction in its third market. The drug, priced at 2,508 yuan per 200 mg vial, is the first Alzheimer's treatment proven to alter the progression of the disease. Eisai has also partnered with a medical insurance company in China to provide partial insurance coverage for the drug.
RBC (TSX:RY) Capital has maintained a positive outlook on Biogen, maintaining a price target of $317.00. The firm's optimism is linked to the potential success of Leqembi, which could achieve sales of $165 million in 2024 and peak sales potential of over $9 billion.
Stifel also reaffirmed a Buy rating with a $275.00 price target for Biogen, following the release of briefing documents ahead of the FDA's Advisory Committee meeting discussing another Biogen treatment, donanemab.
Additionally, Biogen's ALS drug, QALSODY, has been approved for marketing in the European Union, marking it as the first therapy in the EU targeting a genetic cause of ALS.
Biogen also announced plans to acquire Human Immunology Biosciences (HI-Bio) for an upfront payment of $1.15 billion, with an additional $650 million tied to potential development milestones. These recent developments highlight Biogen's ongoing efforts in the pharmaceutical sector.
InvestingPro Insights
Biogen Inc. (NASDAQ:BIIB) has recently expanded its immunology pipeline through strategic acquisitions, a move that aligns with its status as a prominent player in the Biotechnology industry. As it advances with the integration of felzartamab, Biogen's financial health and market performance remain key areas of interest for investors.
According to InvestingPro data, Biogen currently holds a market capitalization of $33.74 billion, showcasing its significant presence in the sector. The company's P/E ratio stands at a moderate 28.78, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at a lower 20.27, indicating potential value relative to earnings. Additionally, Biogen's strong gross profit margin of 75.49% over the same period reflects its ability to maintain profitability despite market fluctuations.
InvestingPro Tips highlight that Biogen's stock generally trades with low price volatility, which may appeal to investors seeking stability. Furthermore, the company's liquid assets exceed its short-term obligations, suggesting a solid financial footing for near-term operations. With analysts predicting profitability for the current year and considering Biogen's profitability over the last twelve months, the company's financial outlook appears robust.
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