2023-08-09 08:30:00 ET
Biotech giant Biogen (NASDAQ: BIIB) can't seem to keep its name out of the news. After a recent major approval for its Alzheimer's disease (AD) medicine Leqembi, the company just announced that it would acquire Reata Pharmaceuticals , a company that focuses on developing treatments for serious and life-threatening diseases.
Biogen has been a relatively volatile stock to own over the past few years, but could this new acquisition move help the company turn things around?
The acquisition of Reata Pharmaceuticals will cost Biogen $7.3 billion in cash. It certainly isn't the largest acquisition we have ever seen in the biotech industry , but it isn't insignificant, either. Why did the company decide to make this move? The key asset in the transaction is Reata's Skyclarys, a treatment for Friedreich's ataxia (FA) that earned approval from the U.S. Food and Drug Administration (FDA) in February.
For further details see:
With an Acquisition on the Way, Is Biogen Stock a Buy?