Topics

Reata Pharma Shares Trading Higher After Reacquiring U.S. and Worldwide Licensing Rights

20:00 EDT 10 Oct 2019 | Streetwise - The Life Science Report

Source: Streetwise Reports   10/11/2019

Shares of Reata Pharmaceuticals are trading 12% higher today after the firm announced it had reacquired all licensing rights in the U.S. for bardoxolone methyl and worldwide rights for omaveloxolone and other next-generation Nrf2 activators from AbbVie.

Clinical-stage biopharmaceutical company Reata Pharmaceuticals Inc. (RETA:NASDAQ) yesterday announced the reacquisition of "development, manufacturing and commercialization rights concerning its proprietary Nrf2 activator product platform originally licensed to AbbVie Inc. (ABBV:NYSE) for territories outside of the United States with respect to bardoxolone methyl (bardoxolone) and worldwide with respect to omaveloxolone and other next-generation Nrf2 activators." The company advised that "as a result it now possesses exclusive, worldwide rights to develop, manufacture and commercialize bardoxolone methyl (bardoxolone), omaveloxolone, and all other next-generation Nrf2 activators, excluding certain Asian markets for bardoxolone which are licensed to Kyowa Kirin Co. Ltd."

The report outlined in the terms of the deal that "as consideration for the rights reacquired by Reata, AbbVie will receive a total of $330 million in cash, primarily for rights to bardoxolone. Reata will make an upfront payment of $75 million in 2019, with the remainder payable in installments in Q2/20 and in Q4/21. AbbVie will also receive low single-digit, tiered royalties from worldwide sales of omaveloxolone and certain next-generation Nrf2 activators, and no royalties on bardoxolone."

Warren Huff, Reata's CEO and president, commented, "AbbVie has been an excellent partner, and our collaboration was instrumental in the clinical development of bardoxolone and omaveloxolone...Regaining these rights will increase Reata's strategic flexibility and control regarding the development and commercialization of our lead drug candidates, and our next-generation Nrf2 activators. We have been actively preparing for the commercial launch of bardoxolone and omaveloxolone in the United States, and we will now expand our efforts to include these international territories as well."

Reata also reported that it amended its loan and security agreement with Oxford Finance LLC and Silicon Valley Bank with the overall term loan facility increasing by $30 million to $155 million. The company advised that the amendment will make $75 million available to Reata upon positive, topline, registrational data from either the CARDINAL study of bardoxolone methyl in patients with Alport syndrome or the MOXIe study of omaveloxolone in patients with Friedreich's ataxia.

The company also announced today that three abstracts highlighting clinical and nonclinical data for bardoxolone methyl (bardoxolone) will be presented at the American Society of Nephrology Kidney Week 2019 Annual Meeting scheduled for early November in Washington, D.C.

The firm notes that the three titles for the presentations are as follows: "Activation of the Keap1/Nrf2 pathway increases GFR by increasing glomerular effective filtration area without affecting the afferent/efferent arteriole ratio," by presenter Kengo Kidokoro, M.D. Ph.D., Department of Nephrology and Hypertension, Kawasaki Medical School, Kurashiki, Okayama, Japan; "Effect of Bardoxolone Methyl on Kidney Events in Patients with Chronic Kidney Disease Stage 4 and Type 2 Diabetes at High Risk of Adverse Kidney Outcomes," by presenter Christoph Wanner, M.D., Department of Medicine and Chief of the Division of Nephrology, University of Würzburg, Germany; and "A Cardiovascular Risk Mitigation Strategy on the Safety of Bardoxolone Methyl Post-BEACON," to be presented by Pablo E. Pergola, M.D., M.Ph., Research Director, Renal Associates, PA, San Antonio, TX.

The company explains that "bardoxolone is an experimental, oral, once-daily activator of Nrf2, a transcription factor that induces molecular pathways that promote restoration of mitochondrial function, reduction of oxidative stress, and inhibition of pro-inflammatory signaling. The FDA has granted orphan drug designation to bardoxolone for the treatment of Alport syndrome, autosomal dominant polycystic kidney disease, and pulmonary arterial hypertension. The European Commission has granted orphan drug designation to bardoxolone for the treatment of Alport syndrome. Bardoxolone is currently being studied in CARDINAL, a Phase 3 study for the treatment of Alport syndrome, FALCON, a Phase 3 study for the treatment of ADPKD, CATALYST, a Phase 3 study for the treatment of connective tissue disease-associated pulmonary arterial hypertension, and AYAME, a Phase 3 study for the treatment of diabetic kidney disease in Japan which is being conducted by Reata's licensee Kyowa Kirin Co., Ltd."

Reata Pharmaceuticals is based in Irving, Tex., and identifies its business as "a clinical-stage biopharmaceutical company that develops novel therapeutics for patients with serious or life-threatening diseases by targeting molecular pathways involved in the regulation of cellular metabolism and inflammation." Reata indicates that "its two most advanced clinical candidates, bardoxolone methyl and omaveloxolone, target the important transcription factor Nrf2 that promotes restoration of mitochondrial function, reduction of oxidative stress, and inhibition of pro-inflammatory signaling. Bardoxolone and omaveloxolone are investigational drugs, and their safety and efficacy have not been established by any agency." The company's lead candidates, bardoxolone methyl and omaveloxolone, are being evaluated in pivotal clinical trials for the treatment of a variety of chronic and genetic diseases including: Alport syndrome (AS); Friedreich's ataxia (FA); connective tissue disease-associated pulmonary arterial hypertension (CTD-PAH); and autosomal dominant polycystic kidney disease-chronic diseases (ADPKD). The company also is evaluating bardoxolone methyl for other rare forms of CKD, including: IgA nephropathy, type 1 diabetic CKD, and focal segmental glomerulosclerosis.

Reata Pharmaceuticals began the day with a market capitalization of about $2.6 billion with approximately 30.11 million shares outstanding. As of the close of business yesterday, the firm had a short interest of about 10.4%. RETA shares opened today at $87.23 (+$1.25, +1.45%) compared to yesterday's closing price of $85.98. The stock has traded today between $87.19 and $95.70/share and currently is trading at $96.62 (+$10.64, +12.37%).

Sign up for our FREE newsletter at: www.streetwisereports.com/get-news

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

( Companies Mentioned: ABBV:NYSE, RETA:NASDAQ, )

Original Article: Reata Pharma Shares Trading Higher After Reacquiring U.S. and Worldwide Licensing Rights

NEXT ARTICLE

More From BioPortfolio on "Reata Pharma Shares Trading Higher After Reacquiring U.S. and Worldwide Licensing Rights"

Quick Search

Relevant Topics

BioPortfolio - life science, medical devices and pharmaceutical conference
BioPortfolio is a leading news, information and knowledge resource covering the global life science industries impacted on by biotechnology. The site aims to provide the lay person, the researcher and the management executive with a single location to so...

Collaborations in biotechnology
Commercial and academic collaborations are used throughout the biotechnology and pharmaceutical sector to enhance research and product development. Collaborations can take the form of research and evaluation agreements, licensing, partnerships etc. ...

The Top 100 Pharmaceutical Companies
Top 10 biotech and pharmaceutical companies worldwide based on market value in 2015 2015 ranking of the global top 10 biotech and pharmaceutical companies based on revenue (in billion U.S. dollars) Johnson & Johnson, U.S. 74...