Abbott Laboratories Spends $400 Million on Development Deal

Abbott Laboratories and Reata Pharmaceuticals recently announced they 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 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 US, 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, CNS 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,” said Reata CEO Warren Huff. “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-KB, a transcription factor that regulates many pro-inflammatory enzymes. Suppression of Nrf2 and activation of NF-KB 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-KB may be beneficial in the treatment of these chronic diseases.

“This partnership allows Abbott to enhance its promising research pipeline across multiple therapeutic areas,” added John Leonard, MD, 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.”

Reata Pharmaceuticals, Inc. is the leader in discovering and developing novel, oral anti-inflammatory drugs that activate Nrf2, the primary regulator of cellular antioxidant and detoxification enzymes, and suppress NFkB, the primary regulator of inflammatory genes. Reata is developing these compounds called antioxidant inflammation modulators (AIMs) with the goal of one day making them available to patients suffering from a broad range of diseases associated with inflammation and oxidative stress. Reata plans to build a stand-alone, fully integrated pharmaceutical company with a worldwide medical, commercial, and regulatory presence.