Street View: Biogen's $5.6 billion Apellis bet a strategic fit

Biogen

01/04/2026 12:31

** Biogen BIIB.O agreed to buy Apellis Pharmaceuticals APLS.O for about $5.6 billion, adding a promising kidney disease drug to broaden its rare-disease portfolio amid efforts to diversify beyond its slowing multiple sclerosis franchise.

** At least two analysts raised PT on Biogen

PRESSING NEED

** Needham ("hold") says the acquisition has strong strategic value for Biogen's key late-stage kidney drug felzartamab, though the deal economics longer-term may be uncertain

** Citi ("Neutral," PT: $215) says there was an "increasingly pressing need" for business development deals before its late-stage pipeline of drugs mature

** Brokerage says the pressure on Biogen shares after the deal was due to "the lack of an inflection point investors had hoped for"

** Oppenheimer ("Outperform," PT: $275) says decision to acquire APLS is consistent with BIIB's previously articulated business development strategy

** Brokerage says the addition of APLS's approved drug Empaveli provides "an established nephrology infrastructure to build the foundation for a potential future launch of felzartamab"

** J.P.Morgan ("Neutral") says the deal was a "logical one for BIIB as it provides near-term growth to the portfolio (mid to high teens through 2028) and strengthens the company's rare kidney presence longer-term"

 (Reporting by Mariam Sunny in Bengaluru)

 ((Mariam.ESunny@thomsonreuters.com;))