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Biogen Plans To Spin-Off Its Hemophilia Unit As Publicly Traded Firm

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Biogen Inc. (NASDAQ: BIIB) revealed its intension to spin off its hemophilia business as an independent, publicly traded firm. According to the company, the tactical objective of the transaction was to establish two focused companies dedicated to driving current, as well as future value in their respective therapeutic areas of expertise. The spin-off is expected to be completed either before the end of the current year or early next year.

Biogen's CEO George Scangos remarked, "We expect that the new company will be a leader in discovering, developing, and commercializing innovative therapies for hemophilia, built on remarkable science and a deep understanding of how to continually improve treatment for patients."

The CEO added, "Our expanding hemophilia business continues to perform very well. ELOCTATE® and ALPROLIX® provide meaningful benefits for people living with hemophilia and continue to gain market share. We believe that the best way to realize the full potential of this growing and vital business is to enable it to operate independently with a management team dedicated to providing therapies to people living with hemophilia."

Biogen believes the move to spin-off its hemophilia business, which was anchored by ELOCTATE and ALPROLIX, into a separate publicly traded company would result in two lean, profitable companies that would focus on and pursue tactical priorities specific to their core commercial therapies and pipeline assets.

The company indicated its spin-off is expected to offer investors with greater visibility into its financial, as well as operational structures of each company and a clearer understanding of their respective strategies. Biogen believes that in establishing two standalone companies with dedicated and talented management teams, the two firms would be able to provide the necessary foundation for long-term value creation for each company.

Scangos concluded, "For Biogen, our mission remains unchanged: we continue to aspire to have the greatest impact on patients of any biotechnology company in the history of our industry. Biogen is poised to make a tremendous difference in the lives of millions of people suffering from diseases with a neuronal etiology, including neurodegeneration, neuromuscular disorders, neuropathic pain, and ophthalmological indications. Our depth of knowledge in neuroscience and neurology is remarkable."

In the pre-market trading on Tuesday, the stock traded 0.48 percent higher.

Posted-In: Biotech News Asset Sales General

 

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