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Abbott and Reata Pharmaceuticals Announce Agreement for Next-Generation Antioxidant Inflammation Modulators

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The agreement is in addition to the partnership between the two companies announced 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 percent of costs and profits and Reata will take 30 percent. 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."

AIMs are potent activators of the transcription factor Nrf2. 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. 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 COPD. Therefore, agents that activate Nrf2 and inhibit NF-κB may be beneficial in the treatment of these chronic diseases.

"This partnership allows Abbott to enhance its promising research pipeline across multiple therapeutic areas," said John Leonard, M.D., senior vice president, pharmaceuticals, research and development, Abbott. "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."

Under an agreement reached in September 2010, Reata granted to Abbott exclusive rights to develop and commercialize its lead AIM compound, bardoxolone methyl, outside of theUnited States, excluding certain Asian markets. Reata retainsU.S.development and commercialization rights. Reata and Abbott are currently conducting the BEACON study, a multi-national Phase 3 clinical trial of bardoxolone methyl in patients with stage 4 chronic kidney disease and type 2 diabetes.