Reata acquisition bolsters Biogen’s rare disease portfolio with the addition of SKYCLARYS (omaveloxolone), the first and only FDA approved treatment for Friedreich’s ataxia in the US
The headquarters of Biogen. (Credit: Astrophobe from Wikimedia Commons)
Biogen has completed the acquisition of Reata Pharmaceuticals, a company focused on developing therapeutics that regulate cellular metabolism and inflammation in serious neurologic diseases. As a result of the transaction, Biogen has now acquired SKYCLARYS (omaveloxolone), as well as other clinical and preclinical pipeline programs.
SKYCLARYS, Reata Pharmaceuticals’ lead asset, was approved for the treatment of Friedreich’s ataxia (FA), a rare neuromuscular disorder, in the United States earlier this year.
FA is genetic, progressive, life-shortening, debilitating, and degenerative, affecting an estimated 5,000 diagnosed patients within the United States. The commercial launch of SKYCLARYS is underway in the United States and European regulatory review is ongoing. As of the closing date, over 1,000 patient start forms for SKYCLARYS have been submitted in the United States.
“By adding a highly complementary product in an area of significant unmet medical need to our portfolio, we believe the acquisition of Reata aligns with our strategy to serve patients, drive sustainable growth and create significant shareholder value,” said Christopher A. Viehbacher, President and Chief Executive Officer at Biogen. “With the transaction now complete, we look forward to leveraging Biogen’s rare disease expertise and capabilities to work together with our Reata colleagues as one team to bring SKYCLARYS to patients living with this devastating disease.”
Biogen anticipates significant synergies with its existing rare disease portfolio and plans to update its Full Year 2023 Financial Guidance in conjunction with its third quarter 2023 earnings release. The acquisition of Reata is expected to be slightly dilutive to Biogen’s Non-GAAP diluted Earnings Per Share (EPS) in 2023, roughly neutral in 2024, and significantly accretive beginning in 2025, inclusive of associated transaction costs. As a result of the transaction closing, Reata’s Class A common stock will no longer be listed for trading on the Nasdaq Global Market.
Source: Company Press Release