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Biogen to Acquire RayThera in Up to $1 Billion Deal to Expand Immunology Pipeline

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Biogen to Acquire RayThera in Up to $1 Billion Deal to Expand Immunology Pipeline

Biogen (BIIB) agreed to acquire private biotechnology company RayThera in a deal worth up to $1 billion as the firm aims to strengthen its immunology portfolio.

Shareholders of RayThera, which develops small-molecule therapies in immunology, will receive an upfront payment from Biogen, according to a late Wednesday joint statement by the companies. The shareholders will also be eligible to receive certain clinical and regulatory milestone payments in the future, the companies said.

Biogen's stock was up 0.5% in Thursday's premarket activity, having closed the previous session with a 1.6% gain.

RayThera's portfolio includes several anti-inflammatory assets to potentially treat immune-mediated conditions. The firm's lead candidate is expected to enter phase 1 development early in the third quarter.

"With this acquisition, we are further deepening our pipeline in immunology by adding a suite of assets that can allow us to expand into new disease areas," Biogen's head of development, Priya Singhal, said. "We believe these assets can meaningfully contribute to our long-term pipeline potential and we're excited about the opportunity to rapidly advance the first candidate into the clinic."

The transaction, which requires approval from regulators, is expected to complete in the third quarter. Following completion, Biogen intends to lead the development, manufacturing and global commercialization of RayThera's assets.

"With its strong global development capabilities in immunology, we believe that Biogen is the natural fit to move these assets forward into phase 1 development and beyond," according to RayThera Chief Executive Qing Dong.

In March, Biogen agreed to purchase biopharmaceutical firm Apellis Pharmaceuticals (APLS), strengthening its immunology and rare disease portfolio and accelerating its expansion into nephrology. The deal had a total cash consideration of $5.6 billion.

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