Biogen to buy HI-Bio in $1.8B deal

Biogen has revealed its intention to acquire Human Immunology Biosciences (HI-Bio) for an initial payment of $1.15 billion, with up to an additional $650 million contingent on the achievement of certain milestones. This strategic acquisition aims to expand Biogen’s late-stage drug pipeline and enhance its capabilities in the field of immunology.

The cornerstone of this acquisition is HI-Bio’s leading drug candidate, felzartamab, an anti-CD38 monoclonal antibody designed to treat rare immune-mediated diseases. Currently, felzartamab is in phase 2 clinical trials and has demonstrated promising efficacy in managing two rare autoimmune kidney diseases: primary membranous nephropathy and IgA nephropathy. Additionally, it has shown potential in treating antibody-mediated rejection in kidney transplant patients. Notably, the drug has garnered Breakthrough Therapy and orphan drug designations from the U.S. Food and Drug Administration (FDA), reflecting its potential to address critical unmet medical needs.

This acquisition will also bring HI-Bio’s scientific team under Biogen’s umbrella, particularly focusing on a new research unit based in the San Francisco Bay Area. This team will concentrate on developing treatments for immune-mediated diseases, which aligns with Biogen’s strategic goals to strengthen its expertise and portfolio in immunology.

The announcement of this acquisition comes shortly after Biogen and Ionis Pharmaceuticals elected to discontinue the development of their experimental treatment for amyotrophic lateral sclerosis (ALS), a rare neurodegenerative condition. The decision followed the disappointing results of an early-to-mid stage clinical trial, where the treatment failed to demonstrate significant patient improvement.

With its acquisition of HI-Bio, Biogen is reinforcing its commitment to advancing treatments for complex and rare diseases. The addition of felzartamab to its pipeline and the integration of HI-Bio’s scientific talent are expected to bolster Biogen’s position in the immunology sector.