Multinational biotechnology company Biogen, Inc. (NASDAQ: BIIB) has announced a collaboration agreement with TheraPanacea to focus on multiple therapeutic areas in neuroscience. TheraPanacea is an innovative information technology company that uses artificial intelligence (AI)-based solutions to drive innovation in healthcare.
Through this partnership, the companies aim to leverage machine learning (ML) and AI analysis to develop innovative digital health solutions for personalized and earlier treatment in neurology. These solutions are anticipated to improve patient care, accelerate drug development, and discover underlying pathologies of neurological diseases.
Terms of the Agreement
As per the terms of the collaboration agreement, Biogen will pay $15 million for TheraPanacea’s convertible debt. Additionally, the company will pay around $41 million (based on current exchange rates) as milestone payments.
The deal provides Biogen exclusive rights to TheraPanacea’s technology in neuroscience. Notably, TheraPanacea will make investments to expand its existing operations and workforce in Europe to meet the targets of the collaboration.
Head of Biogen Digital Health, Martin Dubuc, commented, “We believe that neuroscience is at an inflection point for innovation and breakthrough. Advancements in technology may increase our ability to understand disease, target treatments, and manage risk. Based on the outcome of our prior work with TheraPanacea and their success with AI in oncology, we are excited to further this collaboration.”
“We believe digital health solutions will enable us to pioneer a new era of personalized medicine built upon a foundation of accessibility and precision,” Dubuc added. (See Biogen stock price charts)
Wall Street’s Take
Recently, Wells Fargo analyst Mohit Bansal initiated coverage of Biogen with a Hold rating and a price target of $250 (8.34% upside potential).
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 15 Buys and 10 Holds. The average Biogen price target of $346.18 implies 50% upside potential. Shares have lost 7.2% over the past year.
According to the new TipRanks Risk Factors tool, Biogen stock is at risk mainly from three factors: Finance and Corporate, Tech and Innovation, and Production, which contribute 23%, 20%, and 17%, respectively to the total 30 risks identified for the stock.