On the prowl for a deal for months, Biogen (NASDAQ:BIIB) pulled the trigger on Friday. The biotech giant agreed to acquire neurological disease specialist Reata Pharmaceuticals, Inc. (NASDAQ:RETA) for $172.50 per share, or $7.3 billion. The deal comes as a nearly 60% premium to Thursday's closing price for Reata.
Reata recently received FDA approval for SKYCLARYS, the only treatment indicated for patients with Friedreich’s ataxia. Reata is also developing a portfolio of innovative products for a range of neurological diseases.
“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.”
Biogen said the deal is expected to be significantly accretive to its Non-GAAP diluted EPS beginning in 2025.
Biogen expects to finance the acquisition with cash on hand, supplemented by the issuance of term debt.
The deal is expected to close in the fourth quarter of this year.