Aug. 14 Quick Takes: Second bidder drove up price in Biogen-Reata deal

Discussions ahead of the planned $7.3 billion acquisition of Reata Pharmaceuticals Inc. (NASDAQ:RETA) by Biogen Inc. (NASDAQ:BIIB) began in May with talks about a European partnership with a second suitor, identified only as Party A in a regulatory disclosure. Biogen and the other suitor each proposed deals at escalating prices in July, beginning with a $147-per-share offer from Party A on July 10; late last month, Biogen’s $172.50 offer won out over Party A’s $172 bid. The acquisition will give Biogen control of Skyclarys omaveloxolone, approved to treat Friedreich’s ataxia, as it seeks to commercialize Alzheimer’s disease therapy Leqembi lecanemab and antidepressent Zurzuvae zuranolone.

FDA granted accelerated approval to Elrexfio elranatamab-bcmm from Pfizer Inc. (NYSE:PFE) as fifth-line treatment for multiple myeloma patients. The therapy has a boxed warning describing risks of cytokine release syndrome and neurological toxicity; it is available only through a REMS. However, Elrexfio and other BCMA X CD3 bispecifics, including marketed MM competitor Tecvayli teclistamab from Johnson & Johnson (NYSE:JNJ), have yielded lower rates and less severe cytokine release syndrome than CAR T therapies against BCMA. Pfizer has projected that BCMA X CD3 bispecifics will eventually capture 40-80% of the MM market as they move toward earlier lines of treatment...