US Biogen agrees to acquire HI-Bio for $1.8b

US Biogen company announced on Wednesday that it has agreed to acquire privately held Human Immunology Biosciences (HI-Bio) for up to $1.8 billion, Reuters reported.

This move strengthens Biogen’s presence in the rare disease market as its legacy multiple sclerosis drugs face increased competition.

HI-Bio’s lead drug candidate, felzartamab, has completed mid-stage clinical trials for primary membranous nephropathy and transplant rejection. Trials for IgA nephropathy are also underway.

Since CEO Christopher Viehbacher took charge in late 2022, Biogen has made significant changes, including acquiring Reata Pharmaceuticals for $6.5 billion, discontinuing Aduhelm, and implementing job cuts.

Biogen is now placing greater emphasis on newer medications like Leqembi, a second approved Alzheimer’s drug developed with Eisai (4523.T), and Reata’s Skyclarys to drive future growth.

The acquisition is structured with an upfront payment of $1.15 billion to HI-Bio, with an additional $650 million contingent upon felzartamab achieving specific development milestones.

The deal is expected to close in the third quarter of 2024. HI-Bio is backed by venture capital firms ARCH Venture Partners and Monograph Capital, both known for their focus on biotechnology investments.