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Abbott and Reata announce deal to develop and commercialize next-gen antioxidant inflammation modulators
12-13-2011
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 Back |
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