Biogen Idec to acquire Convergence Pharma in potential $675 million deal

US biotech major Biogen Idec (Nasdaq: BIIB) has agreed to acquire independent UK-based Convergence Pharmaceuticals, a clinical-stage biopharmaceutical company, in a deal that is expected to close during the first quarter of this year.

Biogen Idec plans to leverage Convergence’s expertise in chronic pain research and clinical development to accelerate the growth of its pain portfolio, which includes ion channel-modulating product candidates for neuropathic pain. Biogen Idec already has a neuropathic pain drug, neublastin (BG00010), in Phase II development, and is seeking to diversify from its core platform of multiple sclerosis.

Under the terms of the deal, which could be worth $675 million, Biogen Idec will pay Convergence shareholders an upfront of $200 million. Convergence shareholders are 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. Convergence was spun off from UK pharma major GlaxoSmithKline in 2010, with funding from three venture capital firms.