Topline
Texas-based Reata Pharmaceuticals, which earlier this year got the first federal approval to treat degenerative disease Friedreich’s ataxia, is set to be acquired by Biogen in a deal valued at $7.3 billion, a move the biotech giant says will bolster its position in the rare diseases space.
A sign for biotechnology company, Biogen, Inc. is seen on a building in Cambridge, Massachusetts, on … [+]
Key Facts
The acquisition will give Biogen control of Reata’s drug Skyclarys, a medication approved in February by the Food and Drug Administration to treat the genetic condition Friedreich’s ataxia, which causes progressive damage to the spinal cord, nerves and brain.
Biogen said the move will bulk up its neuromuscular and rare disease portfolio, which already includes Spinraza, an on-the-market drug that was the first approved to treat spinal muscular atrophy and Qalsody, which in April became the approved treatment to target a genetic cause of ALS.
Biogen will pay $172.50 per share in cash for Reata, which had a Thursday closing price of $108.55), and said it expects to close the deal by the end of the year.
The company was founded in Plano, Texas in 2002 and focuses on antioxidative and anti-inflammatory drugs
Key Background
Biogen, a Massachusetts-based biotech company with a market cap of nearly $38 billion, has acquired three other companies in the last eight years. The $200 million acquisition of Convergence Pharmaceuticals in 2016 expanded its footprint into chronic pain research and clinical pain management, Biogen paid $120 million upfront for Remedy Pharmaceuticals and its stroke drug Cirara in 2017, and in 2019, paid $800 million to acquire Nightstar Therapeutics, focused on treatment of inherited retinal disorders. The Reata purchase is Biogen’s largest deal since a $6.8 billion merger with Idec in 2003.
Big Number
One in 50,000. That’s how many people are affected by Friedreich’s ataxia, the most common type of hereditary ataxia, according to the National Health Service. Symptoms include balance problems, unclear speech, thickening of the heart muscles, vision loss and hearing loss. People with the condition tend to live into at least their 30s.
What To Watch For
Zuranolone, a Biogen drug the company says treats major depressive disorder and postpartum depression, is awaiting federal approval. Biogen’s application was granted priority review, and an FDA decision is expected by August 5.
Tangent
The FDA earlier this month granted standard approval of Leqembi, said to slow the progression of Alzheimer’s disease by 27%. Leqembi, the first Alzheimer’s treatment to gain standard approval, is made by Biogen and Eisai. As the company prepares for the drug’s launch, Biogen said this week it plans to lay off 1,000 people, or about 11% of its workforce, to cut costs.
Further Reading
FDA Approves New Alzheimer’s Drug But Creators Biogen And Eisai Stock Slides (Forbes)
Biogen Explores Music Therapy To Improve Walking In MS Through Partnership With MedRhythms (Forbes)
Biogen CEO Stepping Down After Struggles With Alzheimer’s Drug Aduhelm (Forbes)