Biogen Cuts Most Apellis R&D Pipelines After $5.6bn Acquisition, Shares Jump 7%
BIIB•Biogen will cut most of Apellis’ legacy research programmes and trim a small number of R&D staff three months after its $5.6bn acquisition, suspending Phase II Empaveli trials in delayed graft function and FSGS. Biogen shares also rose 7% on higher trading volume despite recent downward earnings estimate revisions.
1. Pipeline Trimming After Acquisition
Three months after completing its $5.6bn takeover of rare disease specialist Apellis, Biogen has decided to discontinue the majority of Apellis’ legacy research programmes and reduce a small number of R&D staff. The company has placed Phase II trials for Empaveli (pegcetacoplan) in delayed graft function and focal segmental glomerulosclerosis on hold, citing an ongoing strategic evaluation and recruitment challenges, while the fate of Apellis’ preclinical RNA-based, oral complement inhibitor and gene-edited assets remains unclear.
2. Share Movement and Market Reaction
Biogen shares surged 7% on higher-than-average trading volume following the pipeline announcement and broader market activity, despite recent downward revisions to earnings estimates that could limit near-term upside. The sharp stock move contrasts with a 4% dip in Biogen’s share price when the acquisition was first announced, reflecting mixed investor sentiment over the price paid and focus on commercial value of pegcetacoplan franchises.
