Biogen Inc. announced Friday that it will acquire Reata Pharmaceuticals Inc. in a cash deal worth $7.3 billion. According to Biogen, Reata has made significant progress in developing therapeutics that regulate cellular metabolism and inflammation in serious neurologic diseases.
Reata is best known for its FDA-approved treatment, Skyclarys, which is the first and only approved treatment for Friedreich's ataxia in the U.S. The drug has already been launched commercially and is currently under review in Europe.
Under the agreement, Biogen will pay $172.50 per Reata share. The stock closed at $108.55 on Thursday. The acquisition is expected to be finalized in the fourth quarter of this year and will have a significant positive impact on Biogen's adjusted per-share earnings starting in 2025.
Biogen plans to finance the deal using its cash reserves and by issuing term debt. Friedreich's ataxia is an ultra-rare, genetic, life-shortening, debilitating, and degenerative neuromuscular disorder, explained the company.
Following the announcement, Reata's stock surged 13.3% in premarket trading, while Biogen experienced a 1% drop.