Reata Pays $330 Million to Reacquire Drug Rights from AbbVie
October 10, 2019
Reata Pharmaceuticals said it will pay AbbVie $330 million to reacquire all rights to its proprietary Nrf2 activator product platform for territories outside of the United States relating to bardoxolone methyl (bardoxolone), and worldwide for omaveloxolone and other next-generation Nrf2 activators.
Reata will now possess exclusive, global rights to bardoxolone, omaveloxolone, and all other next-generation Nrf2 activators, excluding certain Asian markets for bardoxolone which are licensed to Kyowa Kirin.
AbbVie, then a part of Abbott, paid $450 million for those rights in 2010. Under their agreement, Reata will make an upfront payment of $75 million in 2019, with the remainder payable in installments in 2020 and 2021. 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.
Bardoxolone and omaveloxolone target transcription factor Nrf2, which promotes restoration of mitochondrial function, reduction of oxidative stress, and inhibition of pro-inflammatory signaling.
Both experimental compounds are in pivotal trials for which Reata expects topline results at the end of 2019. Bardoxolone is being evaluated in a phase 3 study of 157 patients with Alport syndrome, genetic condition affecting the kidneys, vision, and hearing.
Omoveloxolone is being tested in a pivotal trial of 103 patients with Friedreich’s ataxia, a genetic disease that leads to progressive impaired muscle coordination, and gradual loss of muscle strength and sensation in the arms and legs.
“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,” said Warren Huff, Reata’s CEO and president. “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.”
Photo: Warren Huff, Reata’s CEO and president
Author: Rare Daily Staff
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