As momentum returns to the biotech market, Biogen has become the latest large pharmaceutical company to snap up a promising biotech, announcing a deal worth up to $1bn for private immunology firm RayThera.
The acquisition, expected to close in the third quarter of 2026, will see Biogen take over the development of the company’s lead candidate, along with its broader pipeline.
While the target of the lead drug has not been disclosed, it is an anti-inflammatory asset for an immune-mediated condition. The therapy is expected to enter phase 1 trials around the same time the Biogen purchase is completed.
“With this acquisition, we are further deepening our pipeline in immunology by adding a suite of assets that can allow us to expand into new disease areas,” said Dr Priya Singhal, Executive Vice President and Head of Development, Biogen. “We believe these assets can meaningfully contribute to our long-term pipeline potential and we’re excited about the opportunity to rapidly advance the first candidate into the clinic.”
Building the pipeline
The RayThera buy marks Biogen’s second acquisition of 2026. The first, a $5.6bn deal for Apellis Pharmaceuticals in March, added the complement inhibitor pegcetacoplan to the company’s portfolio. The drug is already approved in the US for multiple indications, justifying the heftier price tag and revealing a multi-layered M&A strategy.
The company’s expansion into immunology began in May 2024, when it acquired San Francisco biotech Human Immunology Biosciences. With that deal came felzartamab, a late-stage antibody for severe immune-mediated diseases, which is now one of Biogen’s most important late-stage pipeline assets. The acquisition also led to the creation of Biogen’s West Coast Innovation Hub, focused on this disease area.
Beyond neuroscience
Outside immunology, the fastest-growing area of its pipeline, Biogen is also prioritising its neurology portfolio, for which it is best known. With several of its older MS drugs having already come off patent or facing biosimilar competition, the company’s focus is now on the highly competitive, yet high-reward, field of Alzheimer’s disease.
Its lead Alzheimer’s drug, lecanemab, is already approved for the early-stage treatment of the condition, but the company is seeking additional label expansions this year, including a subcutaneous formulation. It hopes this could expand access to the drug and increase revenues – a key priority as it looks to build a new chapter for the business.
The ‘New Biogen’
In April this year, Christopher Viehbacher, President and Chief Executive Officer, Biogen, spoke of advancing the company towards the “New Biogen”, referring to plans to make strong commercial and pipeline execution decisions to drive the company forward. The recent RayThera deal clearly aligns with this strategy.
On the acquisition, Qing Dong, co-Founder, Chairman and CEO, RayThera, said: “Biogen is the natural fit to move these assets forward into Phase 1 development and beyond,” adding that he is “proud” of what his team has built together since the company was founded in 2023.
The purchase is one of several biotech acquisitions announced in recent months, raising the chance of a return to the sector’s pandemic-era heyday. This time, however, the upswing is being driven by strategic M&A rather than the investor-led boom that defined the COVID-19 era.
Featured image: Ngampol on Adobe Stock
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