June 26 (Reuters) – Biogen said on Friday it had either paused or discontinued funding for most of Apellis Pharmaceuticals’ research programs as it integrates the rare-disease drugs specialist it purchased for $5.6 billion earlier this year.
The U.S. drugmaker has also cut a small number of roles within the research organization as it shifts resources toward Empaveli and Syfovre, the approved therapies acquired through the deal.
“As part of the integration of Apellis, Biogen is conducting a comprehensive review of the former Apellis clinical & preclinical portfolio to further evaluate strategic fit,” a Biogen spokesperson said.
The company did not offer details on the number of roles or the specific programs impacted by the decision.
Biogen has suspended two trials evaluating Empaveli in two separate kidney-related conditions, according to updates posted earlier this month on the U.S. government’s clinical trials database.
The Apellis deal, Biogen’s largest since its 2023 buyout of Reata Pharmaceuticals, is expected to support the company’s near-term growth as demand for its key multiple sclerosis franchise declines and sales of Alzheimer’s drug Leqembi lag expectations.
Empaveli is approved for two rare kidney diseases and a rare blood disorder while Syfovre is authorized to treat geographic atrophy, an advanced eye condition that is a leading cause of blindness.
The two drugs generated a combined revenue of about $689 million last year and are expected to grow at a mid-to-high-teens rate at least through 2028, the companies had said when the deal was announced in March.
(Reporting by Mariam Sunny in Bengaluru; Editing by Sriraj Kalluvila)
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