Biogen’s pursuit of Reata, a rare disease company based in Texas, has unveiled a compelling narrative of corporate rivalry and strategic maneuvering. Recent revelations from a securities filing disclose that Biogen triumphed over a significant contender in the pharmaceutical landscape in its endeavor to acquire Reata. This rival is none other than Sanofi, a prominent player in the field, according to insiders cited by Bloomberg.
The competitive bid for Reata became a clash of titans, showcasing the dynamic interplay between Biogen’s new CEO, Christopher Viehbacher, and his former domain at Sanofi, where he helmed the company for a successful six-year tenure ending in 2014. Viehbacher’s leadership at Sanofi included the orchestration of a remarkable $20 billion acquisition of Genzyme.
Ultimately, Biogen emerged victorious in this high-stakes competition, expending a substantial $7.3 billion to secure Reata, consequently gaining access to the company’s promising Friedreichās ataxia drug, Skyclarys. However, intriguingly, initial proceedings were instigated by another entity only referred to as “Party A,” as indicated by Reata’s filing.
This captivating bidding saga bears a striking resemblance to Sanofi’s prior endeavour to acquire Horizon, wherein heavyweights such as Amgen, Johnson & Johnson, and an undisclosed contender vied for the prize in 2022. In both instancesāHorizon and ReataāSanofi commenced the bidding, yet faced defeat as the final gavel fell. These experiences have prompted questions about Sanofi’s strategic approach to dealmaking, though the company has refrained from elaborating on its tactics.
Despite these setbacks, Sanofi has showcased its prowess in the M&A landscape. Notably, the French pharmaceutical giant invested $2.9 billion to acquire Provention Bio, bolstering its portfolio with the approved immunotherapy Tzield, designed to impede the progression of type 1 diabetes.
Other successful acquisitions, including Kadmon in 2021 and Principia in 2020, have fortified Sanofi’s strategic footing.On the divestiture side, Sanofi recently conducted a noteworthy auction, relinquishing a collection of 16 consumer health brands across Europe to Germany’s Stada Arzneimittel. In a separate move last summer, Sanofi divested 17 established medications to Neuraxpharm, a specialist in central nervous system therapeutics, for an undisclosed sum.
The narrative surrounding Biogen’s triumph over Sanofi in the pursuit of Reata underscores the intricate dynamics and fierce competition that define the pharmaceutical landscape. This tale of strategic manoeuvring, rival CEOs, and high-stakes bidding adds another chapter to the ongoing saga of corporate interactions in the ever-evolving realm of healthcare and biopharmaceuticals.
