Biogen on Friday said it would acquire Reata Pharmaceuticals, the maker of an approved therapy for a rare neurological condition, in a deal worth $7.3 billion.
The transaction price of $172.50 per share is a nearly 60% premium from Reata’s share price at Thursday’s close. The deal is expected to close by the end of the year.
Reata, based in Plano, Texas, won its first approval in February for a drug that treats Friedreich’s ataxia. The drug, called Skyclarys, was the first treatment to be authorized by the Food and Drug Administration for the condition, which causes progressive damage to the brain, nervous system, and muscles. The average life expectancy for a person with FA is in the mid-30s.