Biogen Inc. narrowly beat out Sanofi SA to clinch its $7.3 billion acquisition of Reata Pharmaceuticals, according to people familiar with the matter.
An entity identified as “Party A” in a regulatory filing Friday lost the competition for Reata by 50 cents per share after several rounds of bidding. Party A was Sanofi, the people said, asking to not be identified because the matter isn’t public. Representatives for Reata, Sanofi and Biogen declined to comment.
In a twist, the bidding war pitted Biogen Chief Executive Officer Chris Viehbacher against the French pharma company he used to run as CEO for six years through 2014. While at Sanofi, he masterminded the French pharma company’s $20 billion acquisition of biotech Genzyme Corp.
Paris-based Sanofi kicked off the bidding for the rare-disease drugmaker with a $140-per-share offer on July 7. It increased its offer three times over three weeks, culminating with a “best and final” offer at $172 on July 27. That was just shy of Biogen’s offer to buy Reata for $172.50. Biogen, based in Cambridge, Massachusetts, announced its acquisition the following day.
The revelation provides clarity on the circumstances behind the biggest biotech deal of the summer. A typo in a Reata regulatory filing last week fueled speculation that Merck & Co. was the rival bidder for Reata. It wasn’t.
The deal will help Biogen expand its rare-disease treatments to replace revenue from its aging multiple sclerosis drugs. Reata received US Food and Drug Administration approval in February for Skyclarys, the first approved treatment for Friedreich’s ataxia, a rare inherited disease that can affect children as young as five that causes impaired walking and coordination.
For Sanofi, it’s at least the second time in the past year that it’s pursued a takeover only to get beat out by a rival. Sanofi said it dropped out of the running for Horizon Therapeutics the night before Amgen Inc. announced a deal to buy it for $27.8 billion, saying the price had gotten too high.
--With assistance from Tim Loh.
Author: Michelle F. Davis