Reata Pharmaceuticals, Inc. and Blackstone Life Sciences Announce $350 Million Strategic Investment - Seite 2

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 [phone] (toll-free domestic) or [phone] (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.