Horizon Therapeutics announces $3.05bn acquisition of Viela Bio to expand rare disease pipeline

In a major move to strengthen its leadership in rare diseases, Horizon Therapeutics, an Irish biopharmaceutical company, has agreed to acquire Viela Bio, a US-based biotech firm, for $3.05 billion in a strategic acquisition. This deal, set to be finalized by the end of Q1 2021, comes as part of Horizon’s broader strategy to expand its development pipeline, particularly in autoimmune and severe inflammatory diseases.

The acquisition will see Horizon Therapeutics pay $53 per share in cash, a significant premium for Viela Bio, which is known for its advanced research and clinical development in the autoimmune space. The transaction marks a pivotal step for Horizon as it aims to accelerate growth through a diverse and innovative pipeline, particularly focusing on treatments for rare and hard-to-treat diseases.

Horizon Therapeutics expands pipeline with Viela Bio’s promising therapies

Viela Bio’s pipeline brings considerable value to Horizon’s portfolio, especially in the realm of autoimmune diseases. One of Viela’s most notable assets is Uplizna (inebilizumab-cdon), an FDA-approved therapy for neuromyelitis optica spectrum disorder (NMOSD), a rare and debilitating autoimmune condition of the central nervous system (CNS). Uplizna has shown promising potential, not only in NMOSD but also in ongoing phase 3 trials for myasthenia gravis and phase 2 trials for kidney transplant desensitization.

Beyond Uplizna, Viela Bio’s pipeline includes VIB4920, an investigational fusion protein in phase 2b trials for Sjögren’s syndrome, and VIB7734, an investigational monoclonal antibody in phase 2 for systemic lupus erythematosus (SLE). These treatments are designed to address unmet medical needs, especially in chronic autoimmune conditions where current treatment options are limited.

Horizon’s acquisition of Viela Bio not only adds promising new assets to its portfolio but also strengthens its research and development (R&D) capabilities, especially in the biologics sector. The addition of Viela’s mid-stage biologics pipeline enhances Horizon’s ability to further expand its rare disease treatment offerings and could significantly impact the lives of patients suffering from these conditions.

Strategic acquisition to drive long-term growth for Horizon Therapeutics

According to Tim Walbert, Chairman, President, and CEO of Horizon Therapeutics, the acquisition of Viela Bio is a key milestone in advancing the company’s growth strategy. By integrating Viela’s clinical development expertise and mid-stage pipeline with its own seasoned R&D teams, Horizon is positioning itself as a leader in autoimmune and rare disease treatments. Walbert highlighted that the acquisition will enhance Horizon’s innovation-driven transformation, leveraging the success of treatments like TEPEZZA and KRYSTEXXA to fuel the company’s long-term growth.

Walbert also emphasized Horizon’s commitment to maximizing the potential of Viela Bio’s pipeline, including exploring new indications for its therapies. This aligns with Horizon’s broader goal of meeting the growing demand for effective treatments in underserved therapeutic areas.

Viela Bio’s leadership confident in the merger’s potential

Bing Yao, Chairman and CEO of Viela Bio, expressed confidence that the combined expertise of both companies will accelerate the development of new medicines to treat autoimmune and severe inflammatory diseases. Yao believes that the merger will not only enhance Viela’s existing pipeline but also provide a broader platform for discovering new treatments that address high unmet medical needs. The acquisition also reflects Horizon’s recognition of Viela Bio’s talented team and the strategic value of its research and commercial capabilities.

A major milestone for Horizon’s rare disease strategy

The acquisition of Viela Bio represents a significant step forward in Horizon Therapeutics’ efforts to expand its rare disease portfolio and solidify its place in the biotech industry. With an impressive array of investigational therapies and a growing pipeline, the deal sets the stage for Horizon to enhance its impact in treating conditions that have long lacked effective therapies. As the acquisition moves toward completion, both companies are poised to make significant strides in the development of innovative treatments for autoimmune and inflammatory diseases.