Reata is a global biopharmaceutical company dedicated to advancing novel therapeutics for individuals facing serious or life-threatening diseases and engaged in developing and bringing innovative treatments specifically designed for patients with limited or no approved therapeutic options available to them
The headquarters of Biogen. (Credit: Astrophobe from Wikimedia Commons)
Biogen has signed a definitive agreement to acquire rare disease drugmaker Reata Pharmaceuticals for an enterprise value of $7.3bn.
Reata is a global biopharmaceutical company dedicated to the advancement of novel therapeutics for individuals facing serious or life-threatening diseases. Their focus lies in developing and bringing to market innovative treatments specifically designed for patients who have limited or no approved therapeutic options available to them.
Under the terms of the deal, Biogen will give $172.50 per share in cash to Reata, along with a term debt issuance.
Biogen will also get access to Texas, US-based Reata’s recently cleared drug Skyclarys (omaveloxolone).
Skyclarys is an oral, once-daily drug to treat Friedreich’s ataxia (FA), a rare genetic disorder that causes progressive damage to the nervous system, in adults and adolescents of age 16 years or more in the US.
It was recently approved by the US Food and Drug Administration (FDA). The drug’s commercial launch is ongoing in the US while its Marketing Authorisation Application is under review in Europe by the European Medicines Agency (EMA).
Biogen president and CEO Christopher Viehbacher said: “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.”
The transaction aligns with Biogen’s strategy for sustainable growth and will add a complementary product in the unmet medical need area.
The deal, approved by the boards of directors of both firms, is expected to close in the fourth quarter of 2023.
Reata CEO and chairman Warren Huff said: “Biogen’s expertise and commercial footprint make it the optimal choice to help Skyclarys realize its full potential.
“With its clear understanding of the rare disease patient journey and existing commercial infrastructure, we believe Biogen will establish Skyclarys as the standard of care in the treatment of this devastating genetic disease.”
Additionally, Reata Pharmaceuticals is engaged in the development of cemdomespib to treat patients with diabetic neuropathic pain.