Reata develops therapeutics that regulate cellular metabolism and inflammation in serious neurologic diseases. Reata’s FDA-approved Skyclarys® (omaveloxolone) is the first and only approved treatment for Friedreich’s ataxia (FA) in the United States. A commercial launch is currently underway, amid an ongoing European regulatory review. Additionally, Reata is developing a portfolio of products for a range of neurological diseases.

Christopher Viehbacher, Biogen’s president and CEO commented, “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’s expertise and commercial footprint make it the optimal choice to help Skyclarys realize its full potential,” said Warren Huff, Chairman and CEO of Reata. 

The transaction is currently planned to close in Q4 2023. It is expected that the acquisition will be accounted for as a business combination. The acquisition is expected to slightly dilute Biogen’s Non-GAAP diluted Earnings Per Share (EPS) in 2023, neutral in 2024, and significantly accretive at the beginning of 2025. Biogen plans to update its Full Year 2023 Financial Guidance in conjunction with its Q3 2023 earnings release.

The acquisition will be financed by cash supplemented by the issuance of term debt. It is subject to closing conditions and approval by Reata stockholders. Biogen has entered into voting and support agreements with particular stockholders of Reata with approximately 36% voting power in Reata's common stock.