Biogen to bulk up rare disease treatments with $7 billion Reata acquisition

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Biogen is spending more than $7 billion to buy Reata Pharmaceuticals and bolster its rare disease treatments.

The Alzheimer’s treatment developer said Friday it will pay $172.50 in cash for each share of Reata in a deal it expects to close by the end of this year.

Biogen puts an enterprise value of $7.3 billion on the acquisition, and said it would slightly dilute adjusted earnings per share this year, and be roughly neutral next year before becoming “significantly accretive” in 2025.Biogen makes the multiple sclerosis treatments Techfidera and Tysabri as well as the spinal muscular atrophy treatment Spinraza. It also is partnering with Japanese drugmaker Eisai to sell the new Alzheimer’s treatment Leqembi.

Friedreich’s ataxia is caused by a gene defect inherited from both parents, according to Johns Hopkins Medicine. It can lead to vision and hearing loss, trouble walking, and heart problems. Many patients with it wind up in a wheelchair. Viehbacher said on Tuesday, after the company reported better-than-expected second quarter results, that Biogen is “laser focused” on changing the company’s share price trajectory.

 

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Biogen Looks To Bulk Up Rare Disease Portfolio With $7.3 Billion AcquisitionBiogen will buy Reata Pharmaceuticals and its Friedreich's ataxia drug in a $7.3 billion deal.
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