Reata Pharmaceuticals Shares Up 8% on Re-Acquiring Bardoxolone Rights
October 10 2019 - 12:41PM
Dow Jones News
By Chris Wack
Shares of Reata Pharmaceuticals Inc. (RETA) rose 8% to $82.35
after the company said it re-acquired development, manufacturing
and commercialization rights concerning its proprietary Nrf2
activator product platform originally licensed to AbbVie Inc.
(ABBV) for territories outside of the U.S. with respect to
bardoxolone methyl and world-wide with respect to omaveloxolone and
other next-generation Nrf2 activators.
Shares of Reata closed down 5% Wednesday.
The Texas-based biopharmaceutical company said it now possesses
exclusive, world-wide rights to develop, manufacture and
commercialize bardoxolone methyl, omaveloxolone, and all other
next-generation Nrf2 activators, excluding certain Asian markets
for bardoxolone, which are licensed to Kyowa Kirin Co. Ltd.
Reata said AbbVie will receive $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
the second quarter of 2020 and in the fourth quarter of 2021. In
addition, AbbVie will receive low-single-digit, tiered royalties
from world-wide sales of omaveloxolone and certain next-generation
Nrf2 activators, and no royalties on bardoxolone.
Reata also said it has entered into an amendment to its loan and
security agreement with Oxford Finance LLC and Silicon Valley Bank.
The amended agreement makes $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 term loan facility increased by $30 million to $155
million.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
October 10, 2019 12:26 ET (16:26 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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