Biogen said Tuesday that its board of directors approved the planned separation of its haemophilia business, which will operate under the name Bioverativ. The company also stated that investors will receive a special dividend on February 1 to complete the spin-off.
Under the plan, Biogen shareholders will receive one Bioverativ share for every two Biogen shares held as of January 17, while registered shareholders will receive cash in lieu of stock. Biogen added that it will retain no ownership interest in Bioverativ following the completion of the spin-off.
"Today's announcement is a significant milestone toward the creation of two independent global biotechnology companies, each of which will be focused on transforming the lives of patients in distinct areas," said Biogen CEO George Scangos. According to a regulatory filing, Bioverativ generated $631.2 million in revenue in the first nine months of the year, largely due to sales of the haemophilia therapies Alprolix (recombinant factor IX Fc fusion protein) and Eloctate (recombinant factor VIII Fc fusion protein).
The board's approval of the spin-off follows the recent appointment of Biogen's chief commercial officer Michel Vounatsos to succeed Scangos as CEO next month (for related analysis, see ViewPoints: New Biogen CEO may get a frosty receptor from investors, through little fault of his own).
To read more Top Story articles, click here.