Biogen to Acquire Apellis in $5.6 Billion Deal to Expand Rare-Disease Portfolio

The acquisition reflects Biogen’s strategy to offset declining revenue from its multiple sclerosis treatments while broadening its pipeline of therapies for less common conditions. Per Reuters, the deal will also support Biogen’s expansion into kidney disease treatments, an area where it has been seeking growth opportunities.

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Through the acquisition, Biogen will gain access to Apellis’ drug Empaveli, which treats two rare kidney diseases as well as a rare blood disorder. It will also add Syfovre, a therapy for an advanced eye condition that is among the leading causes of blindness worldwide.

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According to Reuters, the two drugs generated combined revenue of about $689 million last year. The companies expect sales to continue growing at a mid-to-high teens percentage rate annually through at least 2028.

Under the terms of the agreement, Apellis shareholders will receive $41 per share in cash, representing a premium of roughly 140% over the company’s most recent closing price, per Reuters. Shareholders may also receive two additional payments of $2 per share each if certain global sales milestones tied to Syfovre are achieved.

Following the announcement, shares of Apellis surged more than twofold in premarket trading.

Source: Reuters