HQ Team
July 29, 2023: Biogen Inc., a US-based biotechnology company, will acquire Reata Pharmaceuticals for $7.3 billion to expand its neurological portfolio, according to a company statement.
Biogen, a Cambridge, Massachusetts-based company, will pay $172.50 a share in cash, and the acquisition is expected to be “slightly” dilutive to its earnings per share in 2023.
The EPS would be “roughly neutral in” 2024, and “significantly accretive” at the beginning of 2025, according to the statement.
The company, which specializes in the discovery, development, and delivery of therapies for the treatment of neurological diseases, expects to finance the purchase with cash on hand, supplemented by the issuance of term debt.
Skyclarys
Biogen has entered into voting and support agreements with certain stockholders of Reata representing approximately 36% of the voting power of Reata’s common stock.
Reata’s FDA-approved Skyclarys (omaveloxolone) is the first and only approved treatment for Friedreich’s ataxia in the US, with a commercial launch underway.
A European regulatory review is ongoing. Reata is developing a portfolio of innovative products for a range of neurological diseases.
Friedreich’s ataxia, an inherited disorder that affects some of the body’s nerves, is caused by a gene defect that is inherited from both parents.
Symptoms often begin in late childhood and can include trouble walking, fatigue, changes in sensation, and slowed speech. These tend to get worse over time.
The rate of progression varies from person to person.
Wheelchair
Generally, within 10 to 20 years after the appearance of the first symptoms, which occurs between 5 years and 15 years of age, the person is confined to a wheelchair.
Individuals may become completely incapacitated in later stages of the disease. There is no cure for the disorder.
The global prevalence is one in 40,000. In the US, the disorder affects one in 50,000 people and is most common in people of Western European descent.
“We believe Biogen has the foundation in place to accelerate the delivery of Skyclarys,” 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.”
Reata Pharmaceuticals is also developing cemdomespib for the treatment of patients with diabetic neuropathic pain and neural inflammation. It is an investigational oral drug and its safety and efficacy have not been established by any regulatory agency.
The company is based in Plano, Texas and was founded in 2002.
