Biogen is spending more than $7 billion to buy Reata Pharmaceuticals and bolster its rare disease treatments.
The Alzheimer’s treatment developer said Friday it will pay $172.50 in cash for each share of Reata in a deal it expects to close by the end of this year.
Plano, Texas-based Reata focuses on developing treatments that regulate cellular metabolism and deal with inflammation in serious neurologic diseases. It makes Skyclarys, an FDA-approved treatment for the neurologic disorder Friedreich’s ataxia.
Biogen puts an enterprise value of $7.3 billion on the acquisition, and said it would slightly dilute adjusted earnings per share this year, and be roughly neutral next year before becoming “significantly accretive” in 2025.
Regulators and Reata shareholders still need to approve the deal.
Biogen makes the multiple sclerosis treatments Techfidera and Tysabri as well as the spinal muscular atrophy treatment Spinraza. It also is partnering with Japanese drugmaker Eisai to sell the new Alzheimer’s treatment Leqembi.
CEO Christopher Viehbacher said in a statement the company’s experience developing and selling rare disease treatments will help expand the market for Skyclarys, which is being reviewed by European regulators.
Friedreich’s ataxia is caused by a gene defect inherited from both parents, according to Johns Hopkins Medicine. It can lead to vision and hearing loss, trouble walking, and heart problems. Many patients with it wind up in a wheelchair.
Viehbacher has been focused on cutting costs at Biogen and developing the company’s pipeline of potential drugs since he became CEO last November. Biogen has been dealing with sliding sales for its multiple sclerosis treatments and the failed launch of its Alzheimer’s treatment Aduhelm.
Viehbacher said on Tuesday, after the company reported better-than-expected second quarter results, that Biogen is “laser focused” on changing the company’s share price trajectory.
“As I’ve heard from so many investors, our share price hasn’t really moved in 10 years, so that’s where we are focused on really driving … shareholder value,” he said. “And that means allocating capital in a way that’s commensurate with that.”
Shares of Reata Pharmaceuticals Inc. soared 52% to $165 in pre-market trading Friday. Biogen Inc.’s stock climbed 1% to $266.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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