Biogen secures $250M from Royalty Pharma for Phase 3 lupus program

Biogen has strategically partnered with Royalty Pharma to secure financial backing for its ongoing lupus drug development, as revealed in a recent announcement. The collaboration involves litifilimab, an anti-BDCA2 medication, which is currently in Phase 3 trials targeting two types of lupus. In this agreement, Biogen will receive $250 million in cash to continue advancing the lupus program. Meanwhile, Royalty Pharma stands to gain undisclosed payments contingent on regulatory milestones, along with royalty payments potentially reaching the mid-single digits.

The announcement coincided with Biogen's fourth-quarter earnings report, which outperformed Wall Street's estimates both in terms of earnings per share and sales of Leqembi, an Alzheimer's treatment. Amidst growing pressure from investors, Biogen is actively exploring avenues to ensure sustained growth. The company's CEO, Chris Viehbacher, along with other executives, previously indicated that Biogen has between $5 billion and $10 billion available for potential acquisitions by year-end.

In previous discussions with analysts, there have been inquiries about Biogen's lupus initiatives, particularly regarding the company's decision not to pursue CAR-T therapies for lupus, which is a popular trend among other biopharmaceutical firms. Apart from litifilimab, Biogen is also advancing dapirolizumab pegol, an anti-CD40 drug currently in Phase 3 trials for lupus. This program achieved success in a Phase 3 study last year, and a second trial is underway.

Biogen has also reported significant progress in its cost-cutting initiative announced in mid-2023, achieving $400 million in net savings. The company remains on course to reach its target of $1 billion in gross savings by the end of 2025. However, it is important to note that the recent reorganization of Biogen's research operations is not included in these savings.

Furthermore, Biogen is streamlining its early-stage pipeline by discontinuing four programs. These include BIIB113, an oral inhibitor of tau aggregation designed for Alzheimer's disease; BIIB094, an antisense oligonucleotide targeting LRRK2 for Parkinson's disease; BIIB101, an antisense drug in partnership with Ionis for multiple system atrophy; and BIIB143/cemdomespib, a medication from Reata aimed at treating diabetic neuropathic pain.

The strategic collaboration with Royalty Pharma enables Biogen to bolster its financial resources and maintain momentum in its lupus drug development efforts. Meanwhile, the company's efforts to cut costs and optimize its pipeline signify a focused approach to sustaining long-term growth and addressing investor expectations. As Biogen continues to navigate the competitive biopharmaceutical landscape, its strategic decisions and collaborations will be pivotal in shaping its future trajectory.