Biogen, Ionis Expand Neurological Disease Pact for $1 BillionBy
Biogen and Ionis Pharmaceuticals, a Carlsbad, California-based pharmaceutical company, have expanded their collaboration through a new 10-year collaboration agreement to develop antisense drug candidates for a range of neurological diseases in a $1-billion deal.
Under the collaboration, Biogen will pay Ionis $1 billion in cash, which will include $625 million to purchase 11,501,153 shares of Ionis common stock at a price of $54.34 per share, at an approximately 25% cash premium, and a $375 million upfront payment. Biogen will have the option to license therapies arising out of this collaboration and will be responsible for their development and commercialization. In addition, Biogen may pay milestone payments, license fees, and royalties on net sales.
The companies plan to advance programs for neurological diseases, including dementia, neuromuscular diseases, movement disorders, ophthalmology, diseases of the inner ear, and neuropsychiatry. Biogen will have the first choice of neurology targets on which to collaborate with Ionis. In this collaboration, Ionis will be responsible for the identification of antisense drug candidates based on selected targets while Biogen will be responsible for and pay for non-clinical studies, clinical development, manufacturing, and commercialization.
The transaction is subject to customary closing conditions, including the expiration of the applicable waiting period under the Hart Scott Rodino Antitrust Improvements Act of 1976 in the US.
Biogen and Ionis expect the deal to close in the second quarter of 2018.