Biogen CEO sees no burning need for more acquisitions

By Dina Beasley

SAN FRANCISCO (Reuters) – Biogen expects revenue from new launches to exceed its current sales by 2028 and does not feel the need to pursue additional business development deals, the company’s chief executive said.

“The view of the analyst community is that the future of Biogen depends on the next deal that we do, and that’s not a view that we share inside Biogen,” CEO Chris Wiehbacher told Reuters on Monday. In the annual interview of JP Morgan. Health conference in San Francisco.

Last Friday, Biogen offered to buy Sage Therapeutics, its marketing partner for a drug that treats postpartum depression.Sage saw its share price fall by about 76% last year after a series of clinical failures.

Viehbacher declined to comment on the deal, citing legal restrictions.

Biogen shares are down about 42% over the past year.

“While the deal may make financial sense for Biogen, we believe it does little to change the company’s story and additional revenue-generating deals are needed to change the company’s growth profile,” said an analyst at BMO Capital Markets. Evan Seigerman notes.

Wiehbacher said Biogen has “gained confidence” in the strength of its current pipeline, including the amyloid-targeting Alzheimer’s drug Leqembi and BIIB080, an experimental drug that targets tau, another protein found in is in the brains of Alzheimer’s patients.

“We’re doubling down on Alzheimer’s,” the CEO said, noting that news is expected this year on the FDA’s application for subcutaneous Leqembi and the drug’s use as maintenance therapy.

He acknowledged that Leqembi’s sales have not met the highest expectations, but said the trajectory is solid and the company is changing its marketing strategy to target newly diagnosed patients.

Wiehbacher said Biogen also has late-stage studies of felzartamab in rare immunological indications, including kidney transplant patients and an experimental lupus drug.

“It’s hard to find assets that are worth paying for … there’s still an expectation of quite high premiums in the market,” he said.

The CEO said Biogen has “teams of people” at the health conference this week. At last year’s meeting, those teams looked at 100 companies and completed two deals: a partnership with Neomorph to study molecular glue degraders and the acquisition of Human Immunology Biosciences. :

(Reporting by Dina Beasley)