Biogen has entered a definitive agreement to acquire Reata Pharmaceuticals for an enterprise value of $7.3bn.

Biogen agreed to give $172.50 per share in cash to Reata, accompanied by term debt issuance. The transaction will close in the fourth quarter of 2023.

Reata is developing therapeutics for treating serious neurologic diseases, one of which is SKYCLARYS (omaveloxolone).

This therapeutic is Reata’s first FDA-approved Friedreich’s ataxia treatment. Its commercial launch is underway in the US while its European regulatory review is ongoing.

Biogen president and CEO Christopher Viehbacher stated: “With extensive expertise in rare disease product development and global commercialisation, 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.”

Reata’s acquisition will be slightly dilutive to the non-GAAP [generally accepted accounting principles] diluted earnings per share of Biogen in 2023, including associated transaction costs. It will be neutral in 2024 and significantly accretive from 2025.

Reata is also developing cemdomespib to treat diabetic neuropathic pain. It is an investigational drug and its efficacy and safety have not been yet established by any regulatory authorities.