Reata's Acquisition Fits Biogen's Strategy Despite High Cost: Analyst Says High Level Regulatory Scrutiny Not Anticipated
Portfolio Pulse from Vandana Singh
Biogen Inc has agreed to acquire Reata Pharmaceuticals Inc for $172.50 per share in cash, reflecting an enterprise value of approximately $7.3 billion. Analysts from William Blair view the acquisition as fitting Biogen's acquisition goals of de-risked, value-added and accretive assets. They also acknowledged potential competition from other clinical-stage programs, including Larimar Therapeutics Inc, Design Therapeutics Inc, and Solid Biosciences Inc. The deal, if finalized in Q4, would consume the majority of Biogen's $10 billion allocation for corporate acquisitions.
July 28, 2023 | 3:56 pm
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NEGATIVE IMPACT
Design Therapeutics could face increased competition due to Biogen's acquisition of Reata Pharmaceuticals.
The acquisition of Reata Pharmaceuticals by Biogen could potentially increase competition for Design Therapeutics.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
Larimar Therapeutics could face increased competition due to Biogen's acquisition of Reata Pharmaceuticals.
The acquisition of Reata Pharmaceuticals by Biogen could potentially increase competition for Larimar Therapeutics.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
NEGATIVE IMPACT
Solid Biosciences could face increased competition due to Biogen's acquisition of Reata Pharmaceuticals.
The acquisition of Reata Pharmaceuticals by Biogen could potentially increase competition for Solid Biosciences.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Biogen's acquisition of Reata Pharmaceuticals fits its strategy and could strengthen its position in the neuro-rare disease market.
The acquisition fits Biogen's strategy and could potentially strengthen its position in the neuro-rare disease market. However, it will consume the majority of its funds allocated for corporate acquisitions.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Reata Pharmaceuticals is being acquired by Biogen, which could potentially increase its value.
The acquisition by Biogen could potentially increase the value of Reata Pharmaceuticals.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100