Biogen is further expanding beyond its neuroscience roots and dipping more into immunology with a $1.15 billion upfront acquisition of Human Immunology Biosciences, or HI-Bio.
The Wednesday deal comes a few months after Biogen leadership said they’d do more early-stage licensing pacts and not splurge on M&A deals, of which they’ve only done one in recent years: a $7.3 billion consummation of commercial-stage rare disease drugmaker Reata Pharmaceuticals.
For HI-Bio, the move comes just four months after it disclosed a $95 million Series B. ARCH Venture Partners and Monograph Capital birthed the company in 2021 and set it up around an asset licensed from MorphoSys, which itself is being bought by Novartis. HI-Bio’s drug candidate, the anti-CD38 antibody known as felzartamab, is being studied in multiple immune-mediated conditions.
Priya Singhal“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,” Biogen’s head of development Priya Singhal said in a press release.
Biogen could dish out up to $650 million more in biobucks. It will also retain the HI-Bio team, which will give the storied Boston biotech a Bay Area outpost, Biogen said.
Immunology has taken center stage in recent years, and pharmaceutical companies have invested heavily into the field. Bristol Myers Squibb and Sanofi are particularly betting big on their immunology pipelines: Bristol Myers is building Sotyktu into a potential franchise, and Sanofi is assembling a large suite of clinical trials to supplement the megablockbuster Dupixent.
HI-Bio’s pipeline
HI-Bio already completed Phase 2 trials in primary membranous nephropathy (PMN) and antibody-mediated rejection (AMR) in kidney transplant recipients. FDA has granted orphan drug status to felzartamab for both indications.
HI-Bio is also conducting a mid-stage test of the antibody in IgA nephropathy (IgAN), a kidney disease that impairs the ability to filter waste from the blood. Vertex made its own acquisition in the IgAN space earlier this spring with its $4.9 billion deal for Alpine Immune Sciences.
Biogen said HI-Bio plans to move felzartamab into Phase 3 across all three indications. It also has a Phase 1-stage anti-C5aR1 antibody for complement-mediated diseases and discovery-stage mast cell projects.
The acquisition arrives as Biogen works to ramp up its rollout of its Eisai-partnered Alzheimer’s drug Leqembi, finishes polishing its pipeline, reduces its headcount by about 1,000 positions and considers what to do with its biosimilar business.
The deal is anticipated to close in the third quarter and will be funded in cash, Biogen said. Aside from ARCH and Monograph, HI-Bio’s investors also included Alpha Wave Global, Arkin Bio Capital, Jeito Capital and Viking Global Investors.
Biotechs have ridden the wave to large financings in recent months. AltruBio, Alumis and Attovia all closed nine-figure rounds to advance their efforts, while Mirador Therapeutics — founded by the same crew who sold Prometheus to Merck last year — nabbed $400 million to launch as a “precision immunology” company.
— Max Gelman contributed reporting.