Biogen to acquire Nightstar Therapeutics in a deal worth $800m to target retinal diseases

In a significant move within the biotech sector, Biogen, the US-based biotechnology giant, has announced its agreement to acquire Nightstar Therapeutics, a UK-based clinical-stage gene therapy company, in a deal valued at $800 million. The acquisition underscores Biogen’s commitment to expanding its pipeline, particularly in the ophthalmology space, where it aims to address rare and inherited retinal diseases.

The acquisition details and strategic intent

As per the terms of the deal, Biogen will pay $25.50 per share in cash for each share of Nightstar, a premium on the company’s current market valuation. The move aligns with Biogen’s strategy to bolster its presence in ophthalmology, an emerging area of growth for the company, alongside its core focus on neuroscience.

Nightstar Therapeutics is renowned for its cutting-edge research and development of adeno-associated virus (AAV)-based therapies, with a focus on treating inherited retinal disorders. The company’s most advanced asset, NSR-REP1, is currently being evaluated in the Phase 3 STAR trial as a potential treatment for Choroideremia (CHM), a rare, progressive, X-linked inherited retinal disease that leads to blindness. There are no approved treatments for CHM, making NSR-REP1 a promising candidate for patients who have limited options.

Advancing the fight against retinal disease

Choroideremia is caused by a genetic mutation in the CHM gene, which leads to the degeneration of photoreceptor cells in the retina and eventual blindness. NSR-REP1 is a gene therapy that uses an AAV vector to deliver a functioning copy of the CHM gene to the retina, aiming to restore the production of Rab escort protein-1 (REP-1), which is crucial for photoreceptor function.

In addition to its lead candidate, Nightstar is also advancing several other programs, including NSR-ABCA4, which targets Stargardt disease, another inherited retinal disorder. The company’s research pipeline also includes therapies for Best vitelliform macular dystrophy (Best disease) and various forms of retinitis pigmentosa.

Biogen’s expanded pipeline and strategic vision

Michel Vounatsos, CEO of Biogen, commented on the acquisition, noting that ophthalmology represents an exciting growth area for Biogen. He emphasized the company’s goal of advancing gene therapies for rare retinal diseases, which could provide transformative treatments for patients with unmet needs. “With this proposed acquisition, we are continuing to bolster our pipeline and further execute on our strategy to develop and expand a multi-franchise neuroscience pipeline across complementary modalities,” Vounatsos said. The deal is expected to significantly accelerate Biogen’s entry into ophthalmology, especially with NSR-REP1 and NSR-ABCA4 showing promise.

The acquisition aligns with Biogen’s broader vision of using its deep expertise in rare diseases and its vast global reach to enhance the lives of patients suffering from conditions that currently lack effective treatments.

Nightstar’s potential under Biogen’s wing

David Fellows, CEO of Nightstar Therapeutics, shared his enthusiasm about the deal, highlighting how it will provide the company with the necessary platform and resources to advance its mission of restoring sight to patients with inherited retinal diseases. “This transaction accelerates treatment to patients through Nightstar’s key retinal gene therapy programs that modify or halt the progression of blindness,” said Fellows. He also praised Biogen’s resources and expertise in rare diseases, noting that together, the two companies could make a significant difference in the lives of patients worldwide.

Regulatory approvals and timeline

The acquisition is still subject to regulatory approval, and the deal is expected to close by mid-2024, contingent upon the fulfillment of all necessary conditions.

This acquisition marks a pivotal moment in Biogen’s strategy to diversify its portfolio beyond neuroscience, enhancing its position as a leader in innovative treatments for rare and complex diseases. As the deal progresses, Biogen is poised to make meaningful strides in the fight against inherited retinal diseases, offering hope to patients who currently face a bleak prognosis.