Biotechnology company Biogen Inc. (BIIB) Friday announced its agreement to acquire Reata Pharmaceuticals, Inc. (RETA) for $172.50 per share in cash, reflecting an enterprise value of around $7.3 billion.
In pre-market activity on Nasdaq, Reata shares were gaining around 15.2 percent to trade at $125, while Biogen shares were losing around 1.1 percent at $260.
Biogen also said it plans to update its fiscal 2023 outlook, in conjunction with its third quarter 2023 earnings release.
Biogen expects the acquisition to be accounted for as a business combination. The acquisition of Reata is expected to be slightly dilutive to Biogen's adjusted earnings per share in 2023, roughly neutral in 2024, and significantly accretive beginning in 2025, inclusive of associated transaction costs.
The deal was approved by the boards of directors of both companies, and is currently anticipated to close in the fourth quarter of 2023. The transaction is subject to customary closing conditions, including approval by Reata stockholders and the receipt of necessary regulatory approvals.
Reata develops and commercializes novel therapeutics for patients with serious or life-threatening rare diseases with few or no approved therapies. The FDA-approved SKYCLARYS (omaveloxolone) is the first and only approved treatment for Friedreich's ataxia or FA in the United States, with a commercial launch underway, and European regulatory review ongoing.
Reata has made significant advancements developing therapeutics that regulate cellular metabolism and inflammation in serious neurologic diseases.
In th deal, Lazard acted as financial advisor to Biogen and Goldman Sachs acted as financial advisor to Reata.
For comments and feedback contact: editorial@rttnews.com
Business News
April 17, 2026 15:29 ET The ongoing conflict in the Middle East continues to raise concerns for policymakers who worry about the impact of the supply shock and high energy prices on the real economy. Producer price data and various survey results on the housing market were the main news from the U.S. this week. In Europe, industrial production data for the euro area gained attention. GDP figures out of China and the policy move by the Singapore central bank were in focus in Asia.