Biogen finalizes $1.15bn HI-Bio acquisition to boost immunology presence

As Eli Lilly's Kisunla (donanemab) enters the Alzheimer's treatment market, Biogen is diversifying its therapeutic offerings following its $1.15 billion acquisition of Human Immunology Biosciences (HI-Bio). This acquisition, initially agreed upon in May and including $650 million in milestone payments, significantly strengthens Biogen’s pipeline by adding HI-Bio’s anti-CD38 monoclonal antibody candidate, felzartamab.

Priya Singhal, Biogen’s head of development, expressed enthusiasm about the addition of felzartamab, announcing in a July 2 press release that Biogen will progress this candidate to Phase III clinical trials. Felzartamab has already showcased promising results in Phase II trials across various immune-mediated diseases such as IgA nephropathy (IgAN), antibody-mediated rejection (AMR), and primary membranous nephropathy (PMN). Biogen’s Phase III plans encompass these three diseases.

Originally developed by MorphoSys, felzartamab was envisioned as a potential competitor to Johnson & Johnson and Genmab’s multiple myeloma drug, Darzalex (daratumumab). The rights to felzartamab briefly belonged to Celgene in 2013, before being settled with HI-Bio, which licensed it for development outside China in 2022.

Biogen's acquisition of HI-Bio is a strategic move to diversify its focus, traditionally centered on neuroscience. The company is known for co-developing the next-generation Alzheimer’s treatment, Leqembi (lecanemab-irmb), with Eisai. Leqembi is projected to achieve US sales of $4.6 billion by 2030, according to GlobalData’s Pharma Intelligence Centre. However, Biogen’s CEO, Chris Viehbacher, highlighted during a previous earnings call the necessity to diversify therapeutic areas, acknowledging the high risks associated with neuroscience.

The recent FDA approval of Eli Lilly’s Kisunla further intensifies the competition in the Alzheimer’s treatment market. In response, Biogen’s acquisition of HI-Bio’s comprehensive portfolio aims to enhance its presence in the immunology sector. According to the May press release announcing the acquisition, Biogen plans to retain HI-Bio employees and establish a team in the San Francisco Bay Area. Singhal emphasized that felzartamab is a “strategic addition to the Biogen portfolio” and will strengthen their pipeline while leveraging Biogen’s expertise in immunology.