(Reuters) – Biogen said it would buy biotech firm Reata Pharmaceuticals for roughly $6.5 billion to expand its presence in the rare disease drugs market.
Biogen will pay $172.50 per share in cash, which represents a 58.9% premium to Reata’s last closing price.
It expects to finance the acquisition with cash on hand, supplemented by the issuance of term debt, Biogen said.
Shares of Reata were halted in premarket trading, while Biogen fell about 3% after the news.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Shinjini Ganguli)
