Reata Pharmaceuticals, Inc. (Nasdaq:RETA) (“Reata” or “the
Company”), a clinical-stage biopharmaceutical company, today
announced financial results for the second quarter ended June 30,
2017, and provided an update on the Company's business and product
development programs.
Financial Highlights
The Company incurred operating expenses of $24.0
million for the quarter ended June 30, 2017, with research and
development accounting for $17.9 million. This compares to
operating expenses of $13.8 million for the same period of the year
prior, when research and development accounted for $9.1
million. A net loss of $11.6 million was reported by the
Company for the quarter ended June 30, 2017, equating to a loss of
$0.52 per share, compared to net loss of $0.9 million or $0.05 per
share in the same period of the year prior.
The Company incurred operating expenses of $43.9
million for the six months ended June 30, 2017, with research and
development accounting for $32.5 million. This compares to
operating expenses of $26.5 million for the same period of the year
prior, when research and development accounted for $18.4
million. A net loss of $18.7 million was reported by the
Company for the six month period ended June 30, 2017, equating to a
loss of $0.84 per share, compared to net loss of $1.2 million or
$0.07 per share in the same period of the year prior.
Corporate Highlights
As of June 30, 2017, the Company had $65.2 million
in cash and cash equivalents.
On August 1, 2017, the Company closed a follow-on
underwritten public offering of 3,737,500 shares of its Class A
common stock, which included 487,500 shares of its Class A common
stock issued pursuant to an option granted to the underwriters, for
net proceeds of approximately $108.4 million, after deducting
underwriting discounts and commissions and estimated offering
expenses.
Product Development Highlights
Reata is a clinical stage biopharmaceutical company
focused on identifying, developing, and commercializing product
candidates to address serious and life-threatening diseases with
few or no approved therapies by targeting molecular pathways that
regulate cellular metabolism and inflammation. The Company’s
lead product candidates, bardoxolone methyl and omaveloxolone,
activate the important transcription factor Nrf2 to restore
mitochondrial function, reduce oxidative stress, and resolve
inflammation.
Bardoxolone Methyl in Chronic Kidney Disease (CKD)
Caused by Alport Syndrome
Reata is enrolling patients in the Phase 3 portion
of CARDINAL, a double-blind, randomized, placebo-controlled,
multi-center, international trial designed to evaluate the safety
and efficacy of bardoxolone methyl in patients with CKD caused by
Alport syndrome. The trial will enroll approximately 150
patients randomized evenly to either bardoxolone methyl or placebo.
The estimated glomerular filtration rate (eGFR) change will
be measured after 48 weeks while the patient is on treatment, or
on-treatment eGFR, and again after 52 weeks after the patient has
stopped taking the study drug for a four-week withdrawal period, or
retained eGFR. Based on guidance from the United States Food
and Drug Administration (FDA), the year one retained eGFR benefit
data may support accelerated approval under subpart H. After
withdrawal, patients will be restarted on study drug with their
original treatment assignments and will continue on study for a
second year. The second year on-treatment eGFR change will be
measured after 100 weeks, and the retained eGFR benefit will be
measured after withdrawal of drug for four weeks at week 104.
Based upon guidance from the FDA, the year two retained eGFR
benefit data may support full approval. Data from year one of
CARDINAL are expected to be available during the second half of
2019. In July 2017, Reata received orphan drug designation
for bardoxolone methyl for the treatment of Alport syndrome.
Bardoxolone Methyl in Pulmonary Arterial
Hypertension associated with Connective Tissue Disease
Reata is enrolling patients in CATALYST, an
international, randomized, double-blind, placebo-controlled Phase 3
trial examining the safety, tolerability, and efficacy of
bardoxolone methyl in patients with pulmonary arterial hypertension
associated with connective tissue disease (CTD-PAH) when added to
standard-of-care vasodilator therapy. Patients will be on up
to two background therapies and will be randomized 1:1 to
bardoxolone methyl or placebo, and the study drug will be
administered once daily for 24 weeks. Patients randomized to
bardoxolone methyl will start at 5 mg and will dose-escalate to 10
mg at Week 4 unless contraindicated clinically. The primary
endpoint of the study is the change from baseline in 6-minute walk
distance (6MWD) relative to placebo at Week 24. Secondary
endpoints include time to first clinical improvement as measured by
improvement in World Health Organization/New York Heart Association
functional class, increase from baseline in 6MWD by at least 10%,
or decrease from baseline in creatine kinase, which is a surrogate
biomarker for muscle injury and inflammation, by at least 10%.
The trial will enroll between 130 and 200 patients, with the
final sample size determined by a pre-specified, blinded sample
size re-calculation based on 6MWD variability and baseline
characteristics of the first 100 patients enrolled in the trial.
All patients who complete the treatment period are eligible
to continue into an extension trial to evaluate the intermediate
and long-term safety of bardoxolone methyl. Those patients
who had been receiving placebo will be converted to bardoxolone
methyl in the extension trial. Data from CATALYST are
expected to be available during the second half of 2018. In
2015, the FDA granted our request for orphan drug designation for
the treatment of PAH.
Omaveloxolone in Friedreich’s Ataxia (FA)
The Company is screening patients in Part 2 of the Phase 2 MOXIe
trial, a double-blind, randomized, placebo-controlled,
multi-center, international trial designed to evaluate the safety,
tolerability, and efficacy of omaveloxolone in patients with FA.
During August 2017, the FDA confirmed that the modified
Friedreich’s Ataxia Rating Scale (mFARS) was acceptable as the
primary endpoint for Part 2 of the MOXIe trial. The FDA
communication was made in response to the Company’s request that
the FDA confirm its prior guidance that, depending on the MOXIe
trial results, mFARS could be appropriate to support approval of
omaveloxolone for FA under Subpart H. In the recent
communication, FDA indicated that it may consider either
accelerated or full approval based on the overall results of the
trial and strength of the data. FDA also recommended that the
Company extend the treatment duration for Part 2 of the study and
add a straightforward patient-reported or performance-based outcome
endpoint to the study.
The trial will enroll approximately 100 FA patients
randomized evenly to either 150 mg of omaveloxolone or placebo.
The primary endpoint of the trial will be the change from
baseline in mFARS of omaveloxolone compared to placebo at 48
weeks. Additional endpoints will include the change from
baseline in peak work during maximal exercise testing, Patient
Global Impression of Change, and Clinical Global Impression of
Change. The Company plans to randomize the first patient
during the second half of 2017.
About Reata Pharmaceuticals,
Inc.
Reata is 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’s two most advanced clinical candidates (bardoxolone methyl
and omaveloxolone) target the important transcription factor Nrf2
to restore mitochondrial function, reduce oxidative stress, and
resolve inflammation.
Forward-Looking Statements
This press release includes certain disclosures
which contain “forward-looking statements,” including, without
limitation, statements regarding the success, cost and timing of
our product development activities and clinical trials, our plans
to research, develop and commercialize our product candidates, and
our ability to obtain and retain regulatory approval of our product
candidates. You can identify forward-looking statements
because they contain words such as “believes,” “will,” “may,”
“aims,” “plans” and “expects.” Forward-looking statements are
based on Reata’s current expectations and assumptions.
Because forward-looking statements relate to the future, they are
subject to inherent uncertainties, risks, and changes in
circumstances that may differ materially from those contemplated by
the forward-looking statements, which are neither statements of
historical fact nor guarantees or assurances of future
performance. Important factors that could cause actual
results to differ materially from those in the forward-looking
statements include, but are not limited to (i) the timing, costs,
conduct, and outcome of our clinical trials and future preclinical
studies and clinical trials, including the timing of the initiation
and availability of data from such trials; (ii) the timing and
likelihood of regulatory filings and approvals for our product
candidates; (iii) the potential market size and the size of the
patient populations for our product candidates, if approved for
commercial use, and the market opportunities for our product
candidates; and (iv) other factors set forth in Reata’s filings
with the U.S. Securities and Exchange Commission, including its
Annual Report on Form 10-K, under the caption “Risk Factors.”
The forward-looking statements speak only as of the date made and,
other than as required by law, we undertake no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.
|
|
Three Months ended |
|
|
Six Months ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Unaudited Consolidated Statements of
Operations |
|
(in thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collaboration revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
License and milestone |
|
$ |
12,365 |
|
|
$ |
12,365 |
|
|
$ |
25,094 |
|
|
$ |
24,730 |
|
Other
revenue |
|
|
441 |
|
|
|
1 |
|
|
|
444 |
|
|
|
74 |
|
Total
collaboration revenue |
|
|
12,806 |
|
|
|
12,366 |
|
|
|
25,538 |
|
|
|
24,804 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
17,901 |
|
|
|
9,075 |
|
|
|
32,504 |
|
|
|
18,381 |
|
General and administrative |
|
|
5,990 |
|
|
|
4,537 |
|
|
|
11,163 |
|
|
|
7,744 |
|
Depreciation and amortization |
|
|
109 |
|
|
|
179 |
|
|
|
239 |
|
|
|
367 |
|
Total
expenses |
|
|
24,000 |
|
|
|
13,791 |
|
|
|
43,906 |
|
|
|
26,492 |
|
Other
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income |
|
|
73 |
|
|
|
28 |
|
|
|
154 |
|
|
|
51 |
|
Interest expense |
|
|
(468 |
) |
|
|
- |
|
|
|
(473 |
) |
|
|
- |
|
Total
other income |
|
|
(395 |
) |
|
|
28 |
|
|
|
(319 |
) |
|
|
51 |
|
Loss
before provision (benefit) for taxes on income |
|
|
(11,589 |
) |
|
|
(1,397 |
) |
|
|
(18,687 |
) |
|
|
(1,637 |
) |
Provision (benefit) for taxes on income |
|
|
2 |
|
|
|
(461 |
) |
|
|
2 |
|
|
|
(443 |
) |
Net
loss |
|
$ |
(11,591 |
) |
|
$ |
(936 |
) |
|
$ |
(18,689 |
) |
|
$ |
(1,194 |
) |
Net
loss per share—basic and diluted |
|
$ |
(0.52 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.84 |
) |
|
$ |
(0.07 |
) |
Weighted-average number of common shares used in net loss |
|
|
22,365,663 |
|
|
|
18,562,302 |
|
|
|
22,358,092 |
|
|
|
17,274,574 |
|
per share basic and diluted |
|
|
As of |
|
|
As of |
|
|
|
|
June 30, 2017 |
|
|
December 31, 2016 |
|
|
|
(unaudited) |
|
|
|
(in thousands) |
|
Condensed Consolidated Balance Sheet Data |
|
|
|
|
|
|
|
|
Cash
and cash equivalents |
|
$ |
65,176 |
|
|
$ |
84,732 |
|
Working capital |
|
|
17,545 |
|
|
|
27,652 |
|
Total
Assets |
|
|
71,320 |
|
|
|
89,093 |
|
Deferred revenue (including current portion) |
|
|
266,448 |
|
|
|
291,041 |
|
Accumulated deficit |
|
|
(308,153 |
) |
|
|
(289,354 |
) |
Total
stockholders' equity |
|
$ |
(230,308 |
) |
|
$ |
(215,048 |
) |
Contacts
Corporate:
Reata Pharmaceuticals, Inc.
(972) 865-2219
info@reatapharma.com
http://news.reatapharma.com
Investor:
Vinny Jindal
Vice President, Strategy
(855) 55-REATA
ir@reatapharma.com
Media:
Matt Middleman, M.D.
LifeSci Public Relations
(646) 627-8384
matt.middleman@lifescipublicrelations.com
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