Biogen Idec to acquire Convergence Pharma for $200 mn

Biogen Idec has agreed to acquire UK-based Convergence Pharmaceuticals, a clinical-stage biopharmaceutical company with an innovative portfolio of ion channel-modulating product candidates for neuropathic pain. Biogen Idec plans to leverage Convergence’s expertise in chronic pain research and clinical development to accelerate the growth of its pain portfolio.
 
Under the terms of the deal, Biogen Idec will pay Convergence Pharmaceuticals an upfront payment of $200 million. Besides, Convergence shareholders will eligible to receive additional payments up to $475 million contingent on future milestones. Convergence will continue to operate out of Cambridge, UK, under the leadership of its chief scientific officer, Simon Tate.
 
The acquisition is centred on the development of Convergence’s phase 2 clinical candidate (CNV1014802), which has demonstrated clinical activity in proof of concept studies for trigeminal neuralgia (TGN), a chronic orphan disease consisting of debilitating, episodic facial pain. Additionally, CNV1014802 has demonstrated proof of concept for treating pain associated with lumbosacral radiculopathy, more commonly known as sciatica, and has potential applicability in several other neuropathic pain states.
 
Douglas Williams, executive vice president of research and development at Biogen Idec, said, “The team at Convergence Pharmaceuticals has pioneered some of the most innovative science in pain management. We believe their industry-leading talent, capabilities and pipeline of candidates, starting with CNV1014802, will provide a strong foundation upon which to expand our neuropathic pain portfolio.”
 
The acquisition is expected to close in the first quarter of 2015.