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(Reuters) - U.S. drugmaker Biogen Inc rolled out part of its $37
billion investment warchest on Friday, signing a $1 billion deal
that seeks to expand on the strength of an existing partnership
with Ionis Pharmaceuticals Inc.
The 10-year agreement, which gives Biogen the option to license
and commercialize a range of neurological therapies, pushed
shares in California-based Ionis up 9.5 percent to $50.20 before
the bell.
Ionis developed Spinraza, a treatment for rare disease spinal
muscular atrophy that Biogen has licensed and sells. Analysts
say it could replace multiple sclerosis treatment Tecfidera as
Biogen's biggest selling drug.
The list price for Spinraza is $750,000 for the first year of
therapy, dropping to about $375,000 a year after that.
The deal, which comes ahead of Biogen's first-quarter earnings
report on Tuesday, includes a $625 million equity investment in
Ionis and a $375 million upfront payment to the smaller drug
developer.
Ionis is also eligible to receive further milestone-based
payments, license fees and royalties on net sales of the drugs.
The companies said they expect the deal to close in the second
quarter.
The deal with Ionis adds to previous investments in brain
disorder drugs, including a deal with Pfizer Inc that could near
$600 million.
Biogen is also testing aducanumab, a treatment for
memory-robbing Alzheimer's, amid increased skepticism over the
future of viable treatments for the disease.
(Reporting by Tamara Mathias in Bengaluru; Editing by Supriya
Kurane)
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