Biogen to buy rare disease drugmaker for $7.3B

Biogen has agreed to pay $7.3 billion to acquire Reata Pharmaceuticals — the maker of a new treatment for a rare genetic disorder. The deal is expected to close by the end of the year. 

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The companies announced the deal July 28, days after Biogen said it planned to cut 1,000 jobs, or more than 10 percent of its workforce, in an effort to reduce operating expenses. The deal marks Biogen’s first large acquisition under its new CEO, Chris Vehbacher. The former CEO Michael Vounatsos, resigned in May 2022.

Earlier this year, Reata received FDA approval for omaveloxolone, which goes by the brand name Skyclarys — the first approved treatment in the U.S. for a rare genetic disease called Friedreich’s ataxia that causes progressive nervous system damage and movement problems. 

According to The Wall Street Journal, analysts predict Skyclarys could yield more than $1.1 billion in annual sales in 2028, though that is largely dependent on securing additional approvals to sell the drug in Europe and to pediatric patients in the U.S.

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