Street Calls of the Week
CAMBRIDGE/CHICAGO - Biogen Inc. (NASDAQ:BIIB), a prominent player in the biotechnology industry with a market capitalization of $22 billion and a "GREAT" financial health rating according to InvestingPro, has secured exclusive worldwide rights to Vanqua Bio’s preclinical oral C5aR1 antagonist program through a licensing agreement announced Friday.
Under the deal, Biogen will pay Vanqua Bio $70 million upfront and up to $990 million in potential milestone payments, plus tiered royalties on future sales. The upfront payment will be recorded as an Acquired In-Process Research and Development expense in the fourth quarter of 2025. With a strong current ratio of 2.5 and substantial cash flows, Biogen appears well-positioned to handle this investment while maintaining its robust financial position.
The oral C5aR1 antagonist targets neutrophil-driven inflammation, a mechanism involved in various inflammatory disorders. The compound has demonstrated inhibition of complement activation of pathogenic immune cells in preclinical studies, with a safety profile that supports advancement to clinical development.
"This agreement reflects our strong commitment to building a comprehensive immunology pipeline with a strategic focus on both innate and adaptive immune pathways," said Jane Grogan, Executive Vice President and Head of Research at Biogen.
The acquisition strengthens Biogen’s early-stage immunology portfolio by adding an oral treatment with potential applications across multiple immune-mediated diseases. If development proceeds as planned, Biogen expects to file an Investigational New Drug (IND) application in 2027.
Jim Sullivan, Chief Executive Officer of Vanqua Bio, noted that the transaction allows his company to remain focused on its central nervous system pipeline while Biogen advances the C5aR1 program.
Biogen will assume responsibility for all future development, manufacturing, and commercialization efforts related to the program, according to the press release statement.
In other recent news, Biogen Inc. announced it expects to record approximately $2 million in acquired in-process research and development expenses for the third quarter of 2025, impacting its net income per diluted share by about $0.01. RBC Capital has lowered its price target for Biogen from $219 to $217, while maintaining an Outperform rating, and anticipates Biogen may exceed consensus estimates for both revenue and earnings per share in its upcoming report. RBC projects revenue of $2,493 million and earnings per share of $4.43, compared to consensus estimates of $2,339 million and $3.84, respectively. Additionally, Biogen, in collaboration with Eisai Co., Ltd., announced the availability of the Leqembi Iqlik subcutaneous injection in the U.S. for Alzheimer’s disease patients, following FDA approval in August 2025. The injection serves as a maintenance dosing option for patients with mild cognitive impairment or mild dementia after completing 18 months of intravenous treatment. Furthermore, Biogen is set to present data from its studies of dapirolizumab pegol for systemic lupus erythematosus at the American College of Rheumatology Convergence 2025. Lastly, Jesús Mantas, who serves on Biogen’s board, has been appointed to the National Association of Corporate Directors’ board of directors.
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