Biogen eyes potential acquisitions – Stat News

FILE PHOTO: A sign marks a Biogen facility in Massachusetts
FILE PHOTO: A sign marks a Biogen facility in Cambridge, Massachusetts, U.S. January 26, 2017. REUTERS/Brian Snyder/File Photo

January 13, 2022

(Reuters) – Biogen Inc is working with investment bank Goldman Sachs to find potential targets for acquisitions, Stat News reported on Thursday, citing an unnamed source.

The report said the company’s board had warmed to the idea of acquisitions amid the turmoil surrounding its controversial Alzheimer’s drug Aduhelm.

Biogen did not immediately reply to a Reuters request for comment on the report.

On Tuesday, the U.S. Centers for Medicaid and Medicare Services (CMS) said it would cover Aduhelm, and similar treatments, only for patients enrolled in approved clinical trials, threatening sales of the drug.

In a conference call with analysts on Thursday, Biogen Chief Executive Officer Michel Vounatsos said the management was engaging with the board on “tactical, short-term measures, but also strategic options”.

Vounatsos was replying to a query on whether the company would consider any strategic options to protect shareholder value, especially in light of the Aduhelm controversy.

Aduhelm was approved by the U.S. Food and Drug Administration in June despite a vote by the agency’s outside advisers that the treatment’s clinical benefits had not been proven.

(Reporting by Leroy Leo; Editing by Devika Syamnath)