Signage outside the Biogen Inc. office in the Kendall Square neighborhood of Cambridge, Massachusetts, US, on Tuesday, Sept. 6, 2022.
Adam Glanzman | Bloomberg | Getty Images
Biogen has agreed to acquire Apellis Pharmaceuticals for about $5.6 billion in cash, expanding its portfolio of rare-disease medicines, the companies said on Tuesday.
The deal marks Biogen’s push to bolster growth as revenue from its multiple sclerosis drugs wanes and as it seeks to build a broader rare-disease portfolio, including an expansion into kidney disease treatments.
Biogen will gain access to Apellis’ drug Empaveli, which is approved for two rare kidney diseases as well as a rare blood disorder. It will also acquire Syfovre, which is approved to treat an advanced eye disorder that is one of the leading causes of blindness globally.
The drugs generated combined revenue of about $689 million last year and are expected to grow in the mid-to-high teens range at least through 2028, the companies said.
Under the terms of the deal, Apellis shareholders will receive $41 per share in cash, representing a premium of about 140% to the stock’s last close.
They are also eligible to receive two payments of $2 per share each, contingent on certain global sales milestones for Apellis’ eye disorder drug Syfovre, the companies said.
Shares of Apellis rose more than twofold in premarket trading.