Biogen Cuts Apellis Pipeline After $5.6 Billion Buyout as Stock Gains 7%
BIIB•Biogen will halt investment in most of Apellis’s research programs, suspending its Phase II Empaveli trials in DGF and FSGS and cutting R&D staff after its $5.6 billion acquisition. The stock rallied 7% on elevated volume but may struggle as analysts cut earnings estimates.
1. Pipeline Rationalization Post-Apellis Acquisition
Biogen is ceasing investment in most of Apellis’s inherited research programs, suspending Phase II trials of pegcetacoplan (Empaveli) in delayed graft function and focal segmental glomerulosclerosis. The company will reduce R&D headcount within the acquired team while continuing a Phase II Syfovre (pegcetacoplan) and RNAi combo study in geographic atrophy, signalling a focus on commercialized assets.
2. Stock Surge and Analyst Outlook
Biogen shares jumped 7% on elevated trading volume following the announcement, reflecting investor optimism over cost savings and pipeline streamlining. However, recent downward revisions to full-year earnings estimates suggest analysts are tempering growth expectations, which could pressure the stock if forecasts continue to decline.
