Biogen, a leading biotechnology company, has announced a definitive agreement to acquire Reata Pharmaceuticals for an enterprise value of $7.3 billion. Under the agreement, Biogen will pay $172.50 per share in cash to Reata, and the transaction is expected to be completed in the fourth quarter of 2023.
Reata Pharmaceuticals specializes in the development of therapeutics for serious neurologic diseases, including its first FDA-approved treatment for Friedreich’s ataxia, known as SKYCLARYS (omaveloxolone). The commercial launch of SKYCLARYS is currently underway in the United States, while its European regulatory review is ongoing.
Biogen’s President and CEO, Christopher Viehbacher, expressed enthusiasm for the acquisition, stating, “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.”
The acquisition of Reata Pharmaceuticals will slightly dilute Biogen’s non-GAAP diluted earnings per share in 2023, considering associated transaction costs. However, it is expected to be neutral in 2024 and significantly accretive from 2025.
In addition to SKYCLARYS, Reata is also developing cemdomespib, an investigational drug aimed at treating diabetic neuropathic pain. The drug’s efficacy and safety have not yet been established by regulatory authorities.
Biogen’s strategic move to acquire Reata Pharmaceuticals aligns with its focus on enhancing its portfolio of treatments for neuromuscular and rare diseases. With its established track record in rare disease product development and global commercialization, Biogen aims to accelerate the delivery of SKYCLARYS to patients worldwide, further bolstering its position in the rare disease market.
