Biogen Inc. (NASDAQ:BIIB) on Wednesday agreed to acquire private biotechnology company RayThera Inc. for up to $1 billion.
The company looks to further expand its immunology pipeline and broaden its reach into additional disease areas.
The deal includes an upfront payment to RayThera shareholders, with the majority of the consideration tied to future clinical and regulatory milestone achievements.
The transaction is expected to close in the third quarter of 2026.
Acquisition Adds Early-Stage Immunology Assets
RayThera focuses on discovering and developing small-molecule therapies for immunological diseases.
The company's portfolio includes several anti-inflammatory programs that could treat immune-mediated conditions across multiple indications.
The company expects its lead candidate to enter Phase 1 development in the early third quarter of 2026.
For the past couple of years, Biogen has been in the news due to its Alzheimer's disease program(s),
In May, the company reported topline Phase 2 results for diranersen (BIIB080), its investigational tau-targeting antisense oligonucleotide therapy for early Alzheimer's disease.
The data highlighted cognitive benefits and reductions in tau biomarkers despite missing the study's primary endpoint.
But it has picked up some M&A deals to bolster its pipeline.
Most recently, Biogen acquired Apellis Pharmaceuticals for $41 per share in cash or approximately $5.6 billion.
The acquisition is expected to enhance Biogen's growth portfolio in immunology and rare diseases and add significant value to both companies.
In April, Biogen announced an agreement with Alloy Therapeutics Inc. to accelerate the development of antisense therapies targeting multiple undisclosed indications.
Alloy receives an undisclosed upfront payment and stands to earn additional milestone-based compensation, along with tiered royalties.
BIIB Stock Price Activity: Biogen shares were down 2.38% at $193.93 at the time of publication on Thursday, according to Benzinga Pro data.
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