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Why Is Reata Pharmaceuticals (RETA) Stock Up 53% Today?

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  • Reata Pharmaceuticals (RETA) stock is rising thanks to an acquisition deal with Biogen (BIIB).
  • That has BIIB paying $172.50 per share for RETA stock.
  • That brings the total value of the deal to $7.3 billion.
RETA Stock - Why Is Reata Pharmaceuticals (RETA) Stock Up 53% Today?

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Reata Pharmaceuticals (NASDAQ:RETA) stock is soaring higher on Friday as investors react to an acquisition deal with Biogen (NASDAQ:BIIB).

That deal has Biogen offering to buy shares of RETA stock for $172.50 per share in cash. That represents a roughly 58.9% premium over the stock’s closing price on Thursday. It also brings the total value of the acquisition to $7.3 billion.

Biogen notes that the deal will affect its adjusted EPS over the next few years. Starting in 2023, it will be slightly dilutive to adjusted EPS. In 2024, the deal will be neutral for adjusted EPS. Finally, in 2025 the deal will start being accretive to the company’s adjusted EPS.

Christopher Viehbacher, president and CEO of Biogen, said the following about the acquisition deal:

“This is a unique opportunity for Biogen to bolster our near-term growth trajectory, and SKYCLARYS is an excellent complement to our global portfolio of treatments for neuromuscular and rare disease.”

More Details of the RETA Stock Deal

The acquisition already has the support of both companies’ boards of directors. That means it just needs approval from regulators, as well as shareholders of RETA stock. If all goes well, the two companies expect the deal to close in the fourth quarter of 2023.

With this news, some 5 million shares of RETA stock are changing hands this morning. That’s a major spike in trading volume compared to its daily average of about 798,000 shares. It also has RETA shares up 52.7% as of Friday morning.

Investors looking for more of the most recent stock market news today will want to stick around!

We’ve got all of the latest stock market coverage that traders need to know about on Friday! Among that is what has shares of Xpeng (NYSE:XPEV) stock, Palantir (NYSE:PLTR) stock, and Enphase Energy (NASDAQ:ENPH) stock moving today. All of that news is ready to go at the links below!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/07/why-is-reata-pharmaceuticals-reta-stock-up-53-today/.

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