Biogen Acquires HI-Bio for $1.15B to Boost Immunology

Biogen is capitalizing on its capabilities in rare diseases to develop and market the anti-CD38 antibody felzartamab. The company has committed $1.15 billion upfront to acquire Human Immunology Biosciences (HI-Bio), a biotech firm poised to advance felzartamab into phase 3 trials for multiple rare immune-mediated conditions.

Chris Viehbacher, Biogen’s CEO, identified an overemphasis on neuroscience as a problem when he took leadership. He noted that the company's narrow focus, particularly on high-risk neuroscience projects, exposed it to undue risk. To address this, Viehbacher outlined plans to diversify Biogen’s portfolio, emphasizing expansion into immunology.

This strategic pivot materialized when Biogen announced its acquisition of HI-Bio for $1.15 billion up front, with additional potential milestone payments of up to $650 million. This deal grants Biogen control over felzartamab, an anti-CD38 monoclonal antibody.

“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 Priya Singhal, M.D., head of development at Biogen.

HI-Bio discovered that felzartamab could selectively target and deplete CD38-positive cells, offering a potential treatment for a variety of immune-mediated diseases. The biotech has collected phase 2 data in primary membranous nephropathy (PMN) and antibody-mediated rejection (AMR), and a midstage study in IgA nephropathy (IgAN) is ongoing. The company plans to conduct phase 3 trials in AMR, PMN, and IgAN. The widespread applicability of felzartamab, including for other conditions like lupus, offers Biogen a chance to significantly broaden its immunology portfolio through a single product.

Additionally, Biogen aims to utilize its rare disease expertise to develop and commercialize felzartamab. The company plans to retain talent and expertise from HI-Bio to establish a dedicated team in the San Francisco Bay Area, focused on immune-mediated diseases. In addition to felzartamab, Biogen is also acquiring a phase 1 anti-C5aR1 antibody with applications in complement-mediated diseases through this acquisition.

The journey of felzartamab to this point has been convoluted. Initially developed by MorphoSys as a potential competitor to Johnson & Johnson and Genmab’s multiple myeloma drug Darzalex, Celgene entered a deal for felzartamab in 2013 but backed out less than two years later. HI-Bio subsequently licensed the antibody outside of China in 2022. As part of the deal, MorphoSys received equity in HI-Bio, ending last year with a 12% stake in the firm. Novartis, which has a deal to acquire MorphoSys, might benefit from the sale of this stake.

This acquisition aligns with Biogen’s strategy to diversify its focus and reduce its dependence on high-risk neuroscience projects, making significant strides in the field of immunology.