Belgian biopharmaceutical company argenx has announced it will acquire US-based Forte Biosciences in an all-cash deal valued at $2.2 billion, or approximately £1.7 billion. The transaction, expected to close later this year, will see argenx gain full rights to Forte’s lead candidate, a monoclonal antibody targeting severe atopic dermatitis, a chronic inflammatory skin condition affecting millions worldwide.
The FTSE 100 edged up 0.3% to 8,214.5 points in early trading on Monday, while the broader FTSE 250 added 0.2% to 20,876.3. Healthcare stocks were mixed: AstraZeneca rose 0.5% to 12,450p, while Hikma Pharmaceuticals slipped 0.2% to 1,920p. The pound was flat against the dollar at $1.29, limiting the impact of the dollar-denominated deal for UK-based investors.
Analysts at Peel Hunt noted that the acquisition reflects a broader trend of consolidation in the dermatology space, with major biotech firms seeking to bolster pipelines amid rising demand for advanced therapies. “argenx is betting heavily on Forte’s platform, and the cash offer suggests confidence in near-term regulatory milestones,” said one analyst, who asked not to be named. The deal is subject to customary closing conditions and regulatory approvals.
For UK investors, the acquisition highlights the potential for M&A-driven gains in the biotech sector, though direct exposure is limited. Pension funds with global equity mandates may see indirect benefits if argenx’s share price responds positively. However, the cash nature of the deal means Forte shareholders will receive a fixed price, removing any upside from future share price movements.
The move also comes as the UK’s own life sciences sector faces scrutiny over competitiveness. The government recently announced a £650 million package to support clinical trials and manufacturing, though industry bodies have called for more consistent policy support. The argenx-Forte deal may spur further cross-border acquisitions, particularly in high-growth areas like immunology and rare diseases.