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Biogen’s acquisition of Reata will grant them access to Reata’s FDA-approved treatment for Friedreich’s ataxia.
Biogen announced that it had entered into a definitive agreement to acquire Reata Pharmaceuticals, a pharmaceutical company working in areas of high unmet need, on July 28, 2023. Biogen will acquire Reata for $172.50 per share in cash, an approximate valuation of $7.3 billion. According to a company press release, Reata owns the rights to the first and only FDA-approved treatment for Friedreich’s ataxia, an ultra-rare, genetic, life-shortening, debilitating, and degenerative neuromuscular disorder.
Reata’s Skyclarys (omaveloxolone), is an oral, once-daily medication indicated for the treatment of Friedreich’s ataxia in adults and adolescents aged 16 years and older in the U.S. Omaveloxolone was approved by FDA in February 2023 and is currently under European regulatory review. In addition to omaveloxolone, Reata is developing a portfolio of treatments for various neurological diseases.
“With extensive expertise in rare disease product development and global commercialization… we believe Biogen has the foundation in place to accelerate the delivery of [omaveloxolone] to patients around the world,” said Christopher Viehbacher, president and CEO, Biogen, in the release. “This is a unique opportunity for Biogen to bolster our near-term growth trajectory, and [omaveloxolone] is an excellent complement to our global portfolio of treatments for neuromuscular and rare disease.”
“Biogen’s expertise and commercial footprint make it the optimal choice to help [omaveloxolone] realize its full potential,” said Warren Huff, chairman and ChEO, Reata, in the release. “With its clear understanding of the rare disease patient journey and existing commercial infrastructure, we believe Biogen will establish [omaveloxolone] as the standard of care in the treatment of this devastating genetic disease.”