Biogen has entered into a definitive agreement to acquire rare disease specialist Reata Pharmaceuticals for approximately $7.3bn.
The deal, which is expected to close in the fourth quarter of this year, would give the biotech access to Skyclarys (omaveloxolone), the only treatment approved in the US for the rare and inherited neurologic disorder Friedreich’s ataxia.
There are approximately 5,000 patients in the US diagnosed with the debilitating neuromuscular disease that results in loss of coordination, muscle weakness and fatigue.
Skyclarys was approved by the US Food and Drug Administration (FDA) in February this year to slow or prevent the progression of the disease, with sales of the drug expected to touch $1.3bn by 2029, according to Refinitiv data.
An application for Skyclarys has also already been filed in Europe, with a decision expected early next year.
Biogen’s president and chief executive officer, Christopher Viehbacher, said the company believes it has the foundation in place to “accelerate the delivery of Skyclarys to patients around the world”.
He continued: “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.”
Though Skyclarys is the main asset included in the acquisition, Biogen would also gain access to a portfolio of products that Reata is currently developing for a range of neurological diseases.
Warren Huff, chairman and chief executive officer of Reata, said: “Biogen’s expertise and commercial footprint make it the optimal choice to help Skyclarys realise its full potential.
“With its clear understanding of the rare disease patient journey and existing commercial infrastructure, we believe Biogen will establish Skyclarys as the standard-of-care in the treatment of this devastating genetic disease.”
The deal comes just a few weeks after Biogen and Eisai’s jointly developed Alzheimer’s disease drug was granted traditional approval in the US for use in patients with mild cognitive impairment or early-stage Alzheimer’s disease.
The FDA’s decision made Leqembi (lecanemab-irmb) the first approved anti-amyloid Alzheimer’s disease treatment shown to reduce the rate of disease progression and slow cognitive impairment in the early and mild dementia stages of the disease.