Biogen to Acquire Reata for $7.3 Billion

Biogen has agreed to acquire Plano, Texas-based Reata Pharmaceuticals for $172.50 per share in cash, reflecting an enterprise value of approximately $7.3 billion. Reata has made significant advancements developing therapeutics that regulate cellular metabolism and inflammation in serious neurologic diseases. Reata’s FDA-approved Skyclarys (omaveloxolone) is the first and only approved treatment in the U.S. for the rare neuromuscular disorder known as Friedreich’s ataxia, with a commercial launch underway, and European regulatory review ongoing. In addition, Reata is developing a portfolio of innovative products for a range of neurological diseases including a treatment for diabetic neuropathic pain.

“With extensive expertise in rare disease product development and global commercialization, as demonstrated by SPINRAZA and the recent launch of QALSODY, we believe Biogen has the foundation in place to accelerate the delivery of SKYCLARYS to patients around the world,” said Christopher Viehbacher, Biogen’s President and Chief Executive Officer. “This is a unique opportunity for Biogen to bolster our near-term growth trajectory, and SKYCLARYS is an excellent complement to our global portfolio of treatments for neuromuscular and rare disease.”

The transaction, which was approved by the boards of directors of both companies, is currently anticipated to close in the fourth quarter of 2023. The transaction is subject to customary closing conditions, including approval by Reata stockholders and the receipt of necessary regulatory approvals.

The acquisition of Reata is expected to be slightly dilutive to Biogen’s Non-GAAP diluted Earnings Per Share (EPS) in 2023, roughly neutral in 2024, and significantly accretive beginning in 2025, inclusive of associated transaction costs. Biogen plans to update its Full Year 2023 Financial Guidance in conjunction with its third quarter 2023 earnings release. (Source: Biogen Website, 28 July, 2023)