Biogen Inc. (Nasdaq: BIIB) is set to acquire Reata Pharmaceuticals, Inc. (Nasdaq: RETA) for $172.5 per share in cash, amounting to an enterprise value of approximately $7.3 billion. This significant step forward was announced by both companies, showcasing Biogen’s dedication to expand its presence in the treatment of serious neurologic diseases.

Reata Pharmaceuticals, recognized for developing therapeutics that regulate cellular metabolism and inflammation in neurologic diseases, boasts the first and only US Food and Drug Administration (FDA) approved treatment for Friedreich’s ataxia (FA), SKYCLARYS (omaveloxolone). The drug is currently undergoing a commercial launch in the U.S. and is being reviewed by European regulatory bodies.

Christopher Viehbacher, Biogen’s President and Chief Executive Officer, sees this as a pivotal opportunity to accelerate the delivery of SKYCLARYS to patients around the world. He states, “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. 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.”

Warren Huff, Chairman and Chief Executive Officer of Reata Pharmaceuticals, echoes this sentiment. He mentions, “Biogen’s expertise and commercial footprint make it the optimal choice to help SKYCLARYS realize its full potential.”

The acquisition, approved by the boards of directors of both companies, is anticipated to close in the fourth quarter of 2023. Biogen expects to account for this as a business combination, with the purchase being slightly dilutive to Biogen’s Non-GAAP diluted Earnings Per Share (EPS) in 2023, roughly neutral in 2024, and significantly accretive beginning in 2025. Biogen plans to finance the acquisition with cash on hand, supplemented by the issuance of term debt, pending approval by Reata Pharmaceuticals’ stockholders and receipt of necessary regulatory approvals.

  Biogen, Christopher Viehbacher, omaveloxolone, Pharma acquisition news, QALSODY, Reata Pharmaceuticals, Skyclarys, USA, Warren Huff