Biogen Acquires Apellis for $5.6B to Boost Rare Disease Drugs
Biogen has announced the acquisition of Apellis Pharmaceuticals for $5.6 billion in cash to enhance its rare-disease drug offerings. The move comes as Biogen faces declining revenue from its multiple sclerosis medications and seeks growth in the rare disease sector. Apellis contributes Empaveli, used for rare kidney and blood disorders, and Syfovre, for a blinding eye condition, with last year's combined revenue of $689 million. The deal offers Apellis shareholders $41 per share, a 140% premium, plus potential milestone payments. Apellis stock surged over 100% in premarket trades, reflecting positive market sentiment.
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Biogen has agreed to acquire Apellis Pharmaceuticals for approximately $5.6 billion in cash, significantly expanding its rare-disease medicine portfolio as it seeks to offset declining revenue from multiple sclerosis treatments.
Deal Announcement
Biogen and Apellis Pharmaceuticals announced the acquisition on Tuesday. The all-cash deal values Apellis at about $5.6 billion.
Strategic Rationale
This acquisition is a strategic push by Biogen to bolster growth. With revenue from its multiple sclerosis drugs waning, Biogen aims to build a broader rare-disease portfolio, including expansion into kidney disease treatments.
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Apellis' Drug Portfolio
Apellis owns two key drugs:
Empaveli: Approved for two rare kidney diseases and a rare blood disorder.
Syfovre: Approved to treat an advanced eye disorder that is a leading cause of blindness globally.
These drugs generated combined revenue of about $689 million last year and are expected to grow in the mid-to-high teens range through at least 2028.
Financial Terms
Under the agreement, Apellis shareholders will receive $41 per share in cash, representing a premium of approximately 140% to the stock's last closing price. Additionally, they are eligible for two contingent payments of $2 per share each, tied to global sales milestones for Syfovre.
Market Reaction
Shares of Apellis rose more than twofold in premarket trading following the announcement.
