Biogen Executives Address Investor Pressure and Strategic Focus at JPM25
Biogen’s Head of Development Priya Singhal and CEO Chris Viehbacher addressed the pressure from investors for new deals at the J.P. Morgan Healthcare Conference. Despite the company’s shares falling to a five-year low, Singhal emphasized focusing on growth and scientific conviction in the pipeline. She highlighted Biogen’s ability to achieve lofty goals, such as the approval of an Alzheimer’s drug and the development of a subcutaneous version to ease administration burden.
A significant milestone in 2024 was the positive Phase III PHOENYCS GO trial results for dapirolizumab pegol (dapi) in systemic lupus erythematosus, showing a 49.5% response rate compared to 34.6% with standard care. Other achievements included data for high-dose Spinraza in spinal muscular atrophy, global approvals for Friedreich’s ataxia treatment Skyclaris, and enrollment for the tau-targeting Alzheimer’s treatment BIIB080 in a Phase II trial.
Biogen’s acquisition of Human Immunology Biosciences for $1.15 billion temporarily addressed investor calls for deals. However, the demand for new acquisitions resurfaced ahead of the J.P. Morgan conference. Biogen announced an unsolicited bid for partner Sage Therapeutics, though Singhal could not discuss details due to SEC rules.
Viehbacher stressed that Biogen is not desperate for deals and will not overpay, emphasizing the importance of capital discipline. The company faces challenges with the declining multiple sclerosis franchise, as noted by BMO Capital Markets. Despite this, Singhal described the decline as a gradual glide and highlighted Biogen’s strategic focus on specialty immunology, rare diseases, and neuroscience, avoiding oncology and big immunology diseases.
Singhal clarified that while Biogen is always looking at internal and external innovation, conducting a deal at any cost is not critical for growth. The company believes it is well-positioned to continue its trajectory without succumbing to investor pressure for immediate deals.