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Abbott and Reata announce deal to develop and commercialize next-gen antioxidant inflammation modulators
12-13-2011
by Jeffrey Bouley  |  Email the author

SHARING OPTIONS:

ABBOTT PARK, Ill.—Just a little over a year ago, in September 2010, Reata Pharmaceuticals Inc. granted to Abbott exclusive rights to develop and commercialize its lead antioxidant inflammation modulator (AIM) compound, bardoxolone methyl, outside of the United States, excluding certain Asian markets. Now the two companies have gone a few steps forward in their relationship in announcing that they have entered into a worldwide collaboration to jointly develop and commercialize Reata’s portfolio of second-generation oral AIMs.  
 
For the most part, the deal is a 50-50 split, with the companies equally sharing costs and profits for all new AIMs in all newly licensed indications except for rheumatoid arthritis and select other autoimmune diseases. In those select cases, Abbott will take 70 percent of costs and profits and Reata will take 30 percent. This new deal—in which Abbott is to pay a one-time license payment of $400 million to Reata—is a global agreement and includes a large number of molecules in a broad range of therapeutic areas, including pulmonary, central nervous system disorders and immunology. The companies expect the first compound in this collaboration to enter into human clinical trials in 2012.  
 
The newly penned collaboration agreement also includes a research provision calling for the companies to work together in discovering new molecules that exhibit the same pharmacology as the AIMs already in Reata’s pipeline.  
 
The companies refer to AIMs as “potent activators of the transcription factor Nrf2” and note that activation of Nrf2 promotes the production of a wide range of antioxidant, detoxification and anti-inflammatory genes. Activation of Nrf2 also inhibits NF-κB, a transcription factor that regulates many pro-inflammatory enzymes, they add, and suppression of Nrf2 and activation of NF-κB have been associated with numerous chronic diseases, including multiple sclerosis, rheumatoid arthritis, chronic kidney disease, neurodegenerative disease and chronic obstructive pulmonary disease. Therefore, agents that activate Nrf2 and inhibit NF-κB may be beneficial in the treatment of these chronic diseases, they say.  
 
On a more practical business side, of course, “This deal helps Reata advance new molecules into clinical development in multiple important diseases and enables our company to build a global commercial presence,” according to Reata CEO Warren Huff.  
 
“This partnership allows Abbott to enhance its promising research pipeline across multiple therapeutic areas,” added Dr. John Leonard, Abbott’s senior vice president of pharmaceuticals, research and development, in the official announcement about the deal. “Accumulating data has established the potential for antioxidant inflammation modulators in neuroscience and immunology, and we look forward to expanding our knowledge through further research.”  
 
The Wall Street Journal calls the deal “a risky gambit” to bolster Abbott’s drug pipeline, noting that the deal “is among the largest between a pharmaceutical company and a small biotechnology company to secure rights to multiple compounds that haven't been tested yet in humans,” according to a database of such transactions kept by Elsevier Business Intelligence.
 
Code: E12121101

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