Blackstone (NYSE: BX) and Reata Pharmaceuticals, Inc. (Nasdaq:
RETA) (“Reata”), a clinical-stage biopharmaceutical company, today
announced that funds managed by Blackstone Life Sciences (“BXLS”)
will lead a $350 million royalty and equity investment in Reata to
fund the development and potential commercialization of bardoxolone
methyl (“bardoxolone”), an investigational once-daily oral therapy
being studied for chronic kidney disease (“CKD”) in Alport
syndrome, autosomal dominant polycystic kidney disease (“ADPKD”),
and other associated potential future indications. These are
severe, life-threatening diseases with few or no effective
therapies approved by the U.S. Food and Drug Administration
(“FDA”).
Nicholas Galakatos, Ph.D., Global Head of
Blackstone Life Sciences, said, “This investment aligns with
Blackstone Life Sciences’ mission to help advance promising new
medicines to patients with high unmet needs. If approved,
bardoxolone has the potential to provide for the first time a
therapy that improves the quality of life for tens of thousands of
patients around the world suffering from Alport syndrome.”
“Bardoxolone has been a primary focus of our
company’s research and development efforts to date,” said Warren
Huff, Reata’s Chief Executive Officer and President. “We are
extremely pleased that Blackstone Life Sciences has recognized the
potential of bardoxolone, and the potential of Reata more
generally. We are proud to enter into this strategic investment
agreement with Blackstone Life Sciences.”
“Bringing the first potential therapy to Alport
syndrome patients, a devastating genetic condition with no approved
treatments, is very motivating,” said Paris Panayiotopoulos,
Blackstone Life Sciences Senior Managing Director. “With this
investment, we will support Reata in further developing bardoxolone
for CKD in Alport syndrome, autosomal dominant polycystic kidney
disease and multiple other chronic kidney diseases.”
Transaction Summary
The strategic investment by Blackstone Life
Sciences includes $300 million in return for royalty payments on
worldwide net sales of bardoxolone by Reata and its licensees,
other than Kyowa Kirin Co., Ltd. The financing also includes a $50
million investment in 340,793 shares of Reata’s Class A common
stock at $146.72 per share. Reata will receive the $350 million
investment at closing, which is expected to occur on or before June
24, 2020.
“This $350 million financing further strengthens
Reata’s balance sheet, and extends Reata’s cash runway through the
end of 2023. It positions us to make strategic investments to
further expand our development and commercial capabilities in
preparation for the potential approval and launch of our drugs,”
said Manmeet S. Soni, Chief Operating Officer and Chief Financial
Officer at Reata.
Conference Call Information
Reata’s management will host a conference call
on June 11, 2020 at 8:30 a.m. ET. The conference call will be
accessible by dialing (844) 348-3946 (toll-free domestic) or (213)
358-0892 (international) using the access code: 3371798. The link
to the webcast
is https://edge.media-server.com/mmc/p/ex9owd3g.
A link to the live audio webcast of the call
will be available on the Investors section of Reata’s website at
www.reatapharma.com. An archived webcast will be available on the
Reata website approximately two hours after the event.
About Bardoxolone Methyl
Bardoxolone is an investigational, oral,
once-daily activator of Nrf2, a transcription factor that induces
molecular pathways that promote the resolution of inflammation by
restoring mitochondrial function, reducing oxidative stress, and
inhibiting pro-inflammatory signaling. The FDA has granted Orphan
Drug designation to bardoxolone for the treatment of Alport
syndrome and ADPKD. The European Commission has granted Orphan Drug
designation in Europe to bardoxolone for the treatment of Alport
syndrome. Bardoxolone is currently being studied in CARDINAL, a
Phase 3 study for the treatment of Alport syndrome, FALCON, a Phase
3 study for the treatment of ADPKD, and AYAME, a Phase 3 study for
the treatment of diabetic kidney disease that is being conducted in
Japan by our licensee, Kyowa Kirin Co., Ltd. Bardoxolone treatment
has produced positive results in the Phase 2 and Phase 3-year-one
portions of the CARDINAL study, and in the Phase 2 PHOENIX study in
patients with ADPKD, IgA nephropathy, focal segmental
glomerulosclerosis, and CKD associated with type 1 diabetes.
About Reata Pharmaceuticals,
Inc.
Reata is a clinical-stage biopharmaceutical
company that develops novel therapeutics for patients with serious
or life-threatening diseases by targeting molecular pathways
involved in the regulation of cellular metabolism and inflammation.
Reata’s two most advanced clinical candidates, bardoxolone and
omaveloxolone, target the important transcription factor Nrf2 that
promotes restoration of mitochondrial function, reduction of
oxidative stress, and inhibition of pro-inflammatory
signaling. Bardoxolone and omaveloxolone are
investigational drugs, and their safety and efficacy have not been
established by any agency.
About Blackstone Life
Sciences
Blackstone Life Sciences is a private, global
investment platform with capabilities to invest across the
life-cycle of companies and products within the key life science
sectors. By combining scale investments and hands-on operational
leadership, Blackstone Life Sciences helps bring to market
promising new medicines and medical products that improve patients’
lives.
Reata Forward Looking
Statements
This press release includes certain disclosures
that contain “forward-looking statements,” including, without
limitation, statements regarding the success, cost and timing of
our product development activities and clinical trials, our plans
to research, develop and commercialize our product candidates, our
plans to submit regulatory filings, and our ability to obtain and
retain regulatory approval of our product candidates. You can
identify forward-looking statements because they contain words such
as “believes,” “will,” “may,” “aims,” “plans,” “model,” and
“expects.” Forward-looking statements are based on Reata’s current
expectations and assumptions. Because forward-looking statements
relate to the future, they are subject to inherent uncertainties,
risks, and changes in circumstances that may differ materially from
those contemplated by the forward-looking statements, which are
neither statements of historical fact nor guarantees or assurances
of future performance. Important factors that could cause actual
results to differ materially from those in the forward-looking
statements include, but are not limited to, (i) the timing, costs,
conduct, and outcome of our clinical trials and future preclinical
studies and clinical trials, including the timing of the initiation
and availability of data from such trials; (ii) the timing and
likelihood of regulatory filings and approvals for our product
candidates; (iii) whether regulatory authorities determine that
additional trials or data are necessary in order to obtain
approval; (iv) the potential market size and the size of the
patient populations for our product candidates, if approved for
commercial use, and the market opportunities for our product
candidates; and (v) other factors set forth in Reata’s filings with
the U.S. Securities and Exchange Commission, including its Annual
Report on Form 10-K, under the caption “Risk Factors.” The
forward-looking statements speak only as of the date made and,
other than as required by law, we undertake no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.
CONTACTS
Reata Pharmaceuticals,
Inc.
Vinny Jindal(469)
374-8721Vinny.Jindal@reatapharma.com
Jami Taylor(469)
262-6451Jami.Taylor@reatapharma.com
Blackstone
Jennifer
Friedman212-583-5122Jennifer.Friedman@blackstone.com
Blackstone (NYSE:BX)
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