The board of directors of US biotech Biogen (Nasdaq: BIIB) has approved the spin-off of its hemophilia business, which will be known as Bioverativ Inc.
A special dividend distribution of all of the outstanding shares of Bioverativ common stock has also been declared so that for every two Biogen shares held on January 17, shareholders will receive one share in the new company. Registered shareholders will receive cash in lieu of fractional shares.
The distribution of Bioverativ common stock will complete the proposed separation of the hemophilia business from Biogen, plans for which were first revealed in May after being discussed for some time.
After the separation, Bioverativ will become an independent, publicly-traded company with the ticker symbol Nasdaq: BIVV, focused on hemophilia and other rare blood disorders, and Biogen will retain no ownership interest.
Biogen’s outgoing chief executive George Scangos, whose replacement was named this week, said: “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.”
The new company will be anchored by the drugs Eloctate [antihemophilic Factor (recombinant), Fc fusion protein] for hemophilia A and Alprolix (coagulation Factor IX [recombinant]) for hemophilia B, which last year generated in $320 million and $235 million in sales, respectively.