Biopharma giant Biogen is doling out $7.3 billion in cash to buy Plano, TX-based Reata Pharmaceuticals to bolster its neurological and rare disease businesses.

Cambridge, MA-based Biogen will pay $172.50 per Reata share, which represents a premium of about 59% over the stock’s closing price Thursday. Biogen expects to fund the deal with cash and term debt.

Biogen will gain Reata’s recently approved drug Skyclarys to treat a rare genetic condition that causes progressive damage to the nervous system.

The acquisition is particularly important given it is the first notable transaction under the leadership of CEO Chris Viehbacher, who was appointed last year with a commitment to rebuild Biogen following business difficulties.

During its second-quarter earnings report Tuesday, the company announced a massive cost-reduction program that would reduce its headcount by roughly 1,000 jobs to save $1 billion in operating expenses by 2025.

“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,” said Viehbacher.

While the company was successful in getting its Alzheimer’s medicine Aduhelm approved in the US, sales never materialized due to dispute surrounding its clearance and potential efficacy.

The acquisition is expected to be slightly dilutive to Biogen’s Non-GAAP diluted EPS in 2023, roughly neutral in 2024, and significantly accretive beginning in 2025.