Reata Stock Surges. Biogen Is Buying It for $7.3 Billion in Cash.
Biogen said Friday it will acquire Reata Pharmaceuticals in a deal valued at $7.3 billion.
Biogen (ticker: BIIB) agreed to acquire Reata (RETA) for $172.50 a share in cash. Shares in Reata surged 51% to $164.04 in premarket trading. Biogen shares were down 0.7%.
Reata has developed a drug named Skyclarys for treating Friedreich's ataxia in adults and adolescents age 16 and older. Friedreich's ataxia is a neurodegenerative disorder typically diagnosed during adolescence, which commonly causes patients to need a wheelchair and shortens life expectancy.
"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," Biogen CEO Christopher Viehbacher said in a statement .