Biogen Inc (NASDAQ:BIIB) could find itself at the center of a large acquisition deal, after the regulatory authorities announced new regulations, making the Pfizer-Allergan deal significantly less profitable. As a result, Pfizer has decided to end its proposal, to acquire Allergan for $160 billion. Several experts had earlier cited that the merger would have resulted in huge savings for the company, in terms of tax inversions. However, now it seems as if there are two large companies, looking to expand into other areas.
Out of the two parties, Allergan plc is expected to make the first offer, given that the idea of Biogen merging with Allergan has been floated around quite a few times in the industry. It should be noted here that Biogen currently has an estimated worth of $58 billion, almost half of its peak value last year. A recent decline in sales of the company’s leading drug, Tecfidera, is seen as the main cause of this devaluation.
However, Biogen is also expected to release data from two early stage drug trials and before the news can have an impact; either Allergan or Pfizer can get the company at a very reasonable price. It is also anticipated that one of the two drugs is going to be the only known treatment for Alzheimer’s, which could provide Biogen with a market of $10 billion. Moreover, the other drug is expected to repair damage to the brain, caused as a result of diseases like sclerosis.
Biogen has also made a change in its upper management, with the appointment of Michel Vounatsos, as the Chief Commercial Officer and executive VP. The appointment would come into effect as of April 18, 2016. The new CCO is expected to help grow the company’s portfolio and oversee the commercialization strategy, to maximize revenues. The immediate challenge for the CCO would be the company’s near-term growth, followed by expansion of it’s pipeline.
Biogen Inc (NASDAQ:BIIB) had a trade volume of 3.02 million and gained 5.25%, during the April 6 trading session, to reach a close at $279.57.