FX.co ★ Biogen To Buy Human Immunology Biosciences In Deal Valued At Up To $1.8 Bln

Biogen Inc. (BIIB) and the privately-held biotechnology firm Human Immunology Biosciences (HI-Bio) announced on Wednesday that they have entered into a definitive agreement. Under this agreement, Biogen will acquire HI-Bio for an upfront payment of $1.15 billion, with potential milestone payments totaling up to $650 million.

This acquisition is intended to enhance Biogen's capabilities in immunology by integrating Human Immunology Biosciences' specialized knowledge in immune-mediated indications with Biogen's extensive global development and commercial experience in rare diseases.

Biogen aims to utilize its existing global development and commercialization capabilities, along with its robust scientific expertise in immunology, to drive the progress of felzartamab and other assets within the HI-Bio pipeline. The total potential value of the deal could reach $1.8 billion if specific developmental milestones for the felzartamab programs are met.

Beyond felzartamab, the HI-Bio pipeline features izastobart (HIB210), an anti-C5aR1 antibody currently undergoing Phase 1 clinical trials.

Biogen also plans to retain the expertise and talent from HI-Bio, establishing a dedicated team in the San Francisco Bay Area to focus on expanding efforts in immune-mediated diseases.

The acquisition is to be financed through Biogen's existing cash reserves, with the possibility of utilizing its revolving credit agreement. The transaction is subject to standard closing conditions, including requisite regulatory approvals, and is expected to be finalized in the third quarter of 2024.

This acquisition is not anticipated to affect Biogen's previously issued guidance for 2024.