Biogen Inc (NASDAQ:BIIB) said it has agreed to acquire Reata Pharmaceuticals for about $7.3 billion in cash as it bulks up its neuromuscular and rare disease portfolio.
Shares of Reata shot up 52% to $165 on news of the $172.50 per share offer. Biogen’s shares fell 1.1% to $261.53
The acquisition will add Skyclarys, recently approved in the US as the only treatment indicated for patients with Friedreich’s ataxia, to Biogen’s portfolio of drugs. In addition, Reata is developing a portfolio of innovative products for a range of neurological diseases, Biogen said in a statement.
“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,” commented Biogen CEO Christopher Viehbacher.
“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 has been approved by the boards of both companies and is anticipated to close in the fourth quarter of 2023. Biogen said it expects the acquisition to be accounted for as a business combination.
“Biogen’s expertise and commercial footprint make it the optimal choice to help SKYCLARYS realize its full potential,” Reata chairman and CEO Warren Huff added.
“With its clear understanding of the rare disease patient journey and existing commercial infrastructure, we believe Biogen will establish SKYCLARYS as the standard of care in the treatment of this devastating genetic disease.”
Contact the author at stephen.gunnion@proactiveinvestors.com