Last week, the secondary offer of Reata Pharmaceuticals (NASDAQ: RETA) closed and raised an enormous $505 million in sales of $183 per share, thrice the nest egg which the biotech company has had at the end of the third quarter.
The organization had to raise capital not yet, technically speaking; Reata had ample cash to do it next year on the basis of its expected burn rates. But it was certainly a good time for management to raise capital after a very positive October in which Reata’s equities jumped over 150 percent.
Two late-stage assets
Reata’s success came when the company published Phase 2 data on omaveloxolone, a neurodegenerative disease without FDA approved treatments in patients with Friedreich’s ataxia.
Reata measured a placebo-fixed improvement of two.40 points after 48 weeks of treatment using the modified Friedreich Ataxia Rating Scale (mFARS). Patients who receive omaveloxolone improved with MFARS by 1,55 points, while patients who receive placebo worsened the mFARS score by 0,85 points.
This was just a Phase 2 test, but the lack of existing ataxia treatment makes it possible that the FDA has already developed omaveloxolone with the data Reata. However, the 103-patient trial of patients with ataxia in Friedreich was the largest ever international interventional study.
Bard produced a 9,50 milliliter-per-minute (mL / min) increase, compared to placebo, after 48 weeks of treatment in the estimated glomerular filtration rate. Bard also beat the placebo by 5.14 mL / min after four weeks of elimination.
In phase 3 study Catalyst in patients with pulmonary arterial hypertension-related connective tissue disease (CTD-PAH) is also contained in Bard. CTD-PAH is due to inflammation and scarring, as in the
Capital to launch
Reata is well placed to launch omaveloxolone and bar in the years to come with its large capital infusion. Drug launching is not cheap, and clinical trials are not being undertaken to test existing medicaments for new diseases; Reata’s additional cash gives both.