Biogen Idec announces acquisition of Stromedix

Biogen Idec has announced the acquisition of biotechnology company Stromedix, a specialist developer of innovative therapies for fibrosis and organ failure.

The agreement will see Biogen Idec pay an initial upfront fee of $75 million (47.79 million pounds) to purchase the Massachusetts-based business, with additional contingent value payments of up to $487.5 million also included in the deal.

Stromedix's lead product candidate STX-100 is currently entering phase II testing among patients with idiopathic pulmonary fibrosis, having shown promise in preclinical studies and phase I tests.

The company's portfolio also includes a preclinical compound that may prove useful in the treatment of injury due to inflammation.

Douglas Williams, executive vice-president for research and development at Biogen Idec, said: "This acquisition brings together our scientific strengths and capabilities with a clear goal of providing highly effective therapies to patients suffering from fibrosis."

Earlier this month, the company published its financial report for 2011, highlighting a seven percent annual sales increase while forecasting further growth over the next year.