Biogen halts funding for most Apellis research programs after $5.6 bln buyout

Key Facts

Two months after completing the acquisition of Apellis Pharmaceuticals for $5.6 billion, Biogen has begun restructuring its research portfolio. The company said it has paused or discontinued funding for most of Apellis' research programs, aiming to focus on promising projects and reduce post-merger costs. The move is part of the integration strategy to streamline R&D spending.

The rollback of exploratory programs follows Apellis' focus on neurodegenerative and immune-mediated diseases. According to market data, BIIB shares closed at $201.96 on June 25, reflecting a muted market reaction as investors await further details on restructuring plans. Analysts view the move as typical post-M&A cost optimization, though it may disappoint those who valued Apellis' pipeline breadth.

The focus now shifts to Biogen's ongoing studies and their impact on second-quarter financial results. BIIB closed at $201.96 on June 25, trading between $200.20 and $206.67 during the session. Investors are waiting for Q2 earnings and updates on remaining programs, alongside the upcoming Fed speech that could sway overall sector sentiment.