Biogen to shell out $7.3 billion to buy Reata Pharma
Shares of US rare disease drugmaker Reata Pharmaceuticals (Nasdaq: RETA) shot up 52.8% to $165.90 by mid-morning today, on news of a takeover bid.
Biogen (Nasdaq: BIIB) has agreed to acquire Reata for $172.50 per share in cash, a nearly 60% premium from Reata’s share price at Thursday’s close, reflecting an enterprise value of around $7.3 billion. Markets clearly approved of the move, unusually, sending the buyer’s share up 1% pre-market.
Reata has made significant advancements developing therapeutics that regulate cellular metabolism and inflammation in serious neurologic diseases. Reata’s Food and Drug Administration (FDA)-approved Skyclarys (omaveloxolone) is the first and only approved treatment for Friedreich’s ataxia (FA) in the USA, with a commercial launch underway, and European regulatory review ongoing. In addition, Reata is developing a portfolio of innovative products for a range of neurological diseases.
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