Abbott, Reata Pharmaceuticals ink $400 million agreement
Abbott and Reata Pharmaceuticals have entered into a worldwide collaboration to jointly develop and commercialize Reata's portfolio of second-generation oral antioxidant inflammation modulators (AIMs). The agreement is in addition to the partnership between the two companies formed in September 2010 in which Reata granted to Abbott exclusive rights to develop and commercialize its lead AIM compound, bardoxolone methyl, outside of the United States, excluding certain Asian markets.
The collaboration 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. Abbott and Reata will equally share costs and profits for all new AIMs in all newly licensed indications except for rheumatoid arthritis and select other autoimmune diseases, in which Abbott will take 70% of costs and profits and Reata will take 30%. The deal also includes a research agreement in which the companies will work together to discover new molecules that exhibit the same pharmacology as the AIMs already in Reata's pipeline.
Abbott will make a one-time license payment of $400 million to Reata. The companies expect the first compound in this collaboration to enter into human clinical trials in 2012.
"We are excited to work with Abbott to develop this promising class of compounds," Reata CEO Warren Huff said. "This deal helps Reata advance new molecules into clinical development in multiple important diseases and enables our company to build a global commercial presence."