Biogen is placing a $1.15 billion bet on Chris Viehbacher’s diversification vision. The upfront payment has secured Biogen a deal to buy Human Immunology Biosciences (HI-Bio), a biotech that is preparing to advance an anti-CD38 monoclonal antibody into phase 3 in multiple rare immune-mediated indications.
Viehbacher identified Biogen’s focus on neuroscience as a problem after he took over as CEO of the Big Biotech. For a company of its size, Biogen was too narrowly focused, Viehbacher reckoned, and that was particularly troublesome because its pipeline skewed toward high-risk neuroscience programs. The CEO responded to the perceived problem by outlining plans to expand in other areas, notably immunology.
That plan took off Wednesday, when Biogen disclosed a deal to buy HI-Bio for $1.15 billion upfront and up to $650 million in potential milestone payments. The deal will give Biogen control of the anti-CD38 antibodyfelzartamab.
“We believe this late-stage asset, which has demonstrated impact on key biomarkers and clinical endpoints in three renal diseases with serious unmet needs, is a strategic addition to the Biogen portfolio as we continue to augment our pipeline and build on our expertise in immunology,” Priya Singhal, M.D., head of development at Biogen, said in a statement.
The biotech plans to run phase 3 trials in AMR, PMN and IgAN. The breadth of the program, coupled to the potential to target other immune-mediated diseases such as lupus, gives Biogen an opportunity to significantly expand its presence in immunology through a single pipeline-in-a-product, provided the molecule succeeds in the clinic.
MorphoSys took HI-Bio equity as part of the deal, ending last year with a 12% stake in the firm. Novartis, which struck a deal to buy MorphoSys, could be the beneficiary of the sale of the stake.