US biotechnology company Biogen is to spin off its hemophilia business into an independent, publicly traded business. Biogen said it believes the creation of two separate companies will allow each to focus on and pursue strategic priorities, achieve additional operating efficiencies and respond quicker to opportunities and rapidly changing developments in its patients’ markets.

The new company, yet to be named, will focus on the discovery and development of treatments for the rare bleeding disorder that affects around 400,000 people around the world.

Existing products include Eloctate and Alprolix which treat hemophilia A and B, respectively, and the spin-off will retain commercial rights for North America, Europe, Russia, North Africa and some countries in the Middle East. Biogen is expected to continue manufacturing the two therapies for the next three to five years.

The new business will continue to develop and commercialize Eloctate and Alprolix under Biogen’s existing collaboration with specialty healthcare company, Swedish Orphan Biovitrum. The drugs generated combined revenues of $640 million for the year ended Mar. 31, 2016.

Another goal is to bring longer acting therapies based on Xten technology into clinical development in the first half of 2017 and to accelerate work on bispecific antibodies and hemophilia-related gene therapy programs.

Additional studies will be conducted to confirm early data that suggest Eloctate has the potential to rapidly induce immune tolerance in hemophilia patients who develop inhibitors.

Biogen expects to complete the spin-off by the end of 2016 or early 2017, subject to certain conditions. Its executive vice president for pharmaceutical operations & technology, John, Cox, will be CEO of the new company expected to be headquartered near Boston, Massachusetts, USA

The original Biogen business will keep its focus on neuroscience and neurology, boosting its efforts to develop novel therapies for multiple sclerosis, spinal muscular atrophy, Alzheimer’s and Parkinson’s diseases, amyotrophic lateral sclerosis and neuropathic pain.