Biogen will acquire Reata for a cash price of $172.50 per share, representing a significant premium of 58.9% to the closing share price prior to the announcement of the transaction. The total value of the acquisition is approximately US$7.3 billion. Biogen has long been actively pursuing strategic acquisitions, particularly in the rare disease and immunology space, to diversify its current multiple sclerosis drug portfolio, which faces increasing competition.

Founded in 1978, Biogen's primary focus is on the treatment of neurological diseases. It manufactures the multiple sclerosis drugs Techfidera and Tysabri and the spinal muscular atrophy drug Spinraza. It is also working with Japanese drugmaker Eisai to market a new Alzheimer's treatment, Leqembi. However, the company has recently been struggling with declining revenues and recently announced a reduction in its workforce of around 11%.

Reata is a biopharmaceutical company dedicated to the development and commercialization of innovative therapies for patients with serious or life-threatening diseases that lack effective treatments. In February, the U.S. Food and Drug Administration (FDA) approved its breakthrough drug Skyclarys, the first-ever approved treatment for Friedreich's ataxia, a rare inherited disease that can manifest as early as age five and leads to impaired walking and coordination. Analysts estimate that this new treatment has the potential to generate revenues of USD 1.5 billion.

Biogen's most recent acquisitions were in 2020, when it acquired a minority stake in Sage Therapeutics Inc. for approximately $1.5 billion, and in 2013, when it acquired the remaining stake in the multiple sclerosis drug Tysabri from its partner, Elan Corp., for $3.25 billion.