Biogen’s $7 bln deal goes smaller and safer

Reata Pharmaceuticals

28/07/2023 17:29

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Robert Cyran
       NEW YORK, July 28 (Reuters Breakingviews) - The biotech
firm’s purchase of Reata will gift it a portfolio targeting rare
diseases. With the U.S. government’s Medicare insurance program
recently freed to bargain down prices on best-selling drugs,
such niche therapies have become more appealing versus potential
blockbusters.
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    CONTEXT NEWS 
    Biogen said on July 28 it had agreed to acquire Reata
Pharmaceuticals in a deal valued at $7.3 billion, including
debt. Biogen will pay $172.50 per share, a premium of 59% to
Reata’s closing price on July 27.
    The U.S. Food and Drug Administration approved Reata’s drug
Skyclarys in February for the treatment of Friedreich’s ataxia,
a rare genetic disorder that causes progressive damage to the
nervous system.

 (Editing by Jonathan Guilford and Sharon Lam)
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