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Biogen Idec to pay up to $562.5M for Stromedix

By AP  | February 14, 2012
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NEW YORK (AP) — Biogen Idec Inc. said Tuesday it will pay as much as $562.5 million to acquire Stromedix Inc., a biotechnology firm that is developing treatments for conditions like idiopathic pulmonary fibrosis.

Biogen said it will pay $75 million upfront, and it could pay as much as $487.5 million more based on the development and regulatory approval of drugs developed by Stromedix. Its most advanced drug is in mid-stage clinical testing, and it is studying other drugs that are intended to treat fibrotic diseases, which cause a buildup of scar tissue in organs and leads to organ failure.

Biogen, of Weston, Mass., said there are no approved treatments for idiopathic pulmonary fibrosis, which affects the lungs. It said there are about 200,000 patients in the U.S. and Europe. Stromedix's drug STX-100 has received orphan drug status from the Food and Drug Administration, which means the product will have years of marketing exclusivity if it is approved.

Stromedix is based in Cambridge, Mass., and it is a privately held company. Stromedix founder and CEO Michael Gilman led Biogen's research operations from 2000 to 2005.

Shares of Biogen Idec fell 73 cents to $119.27 in morning trading.

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