Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Reata Pharma Announces $350 Million Strategic Investment from Blackstone Life Sciences

Share on Stocktwits


Shares of Reata Pharmaceuticals traded 30% higher after reporting that Blackstone Life Sciences will invest $350 million in the company to advance bardoxolone methyl as a potential therapy for Alport syndrome and other rare and serious chronic kidney diseases.

Clinical-stage biopharmaceutical company Reata Pharmaceuticals Inc. (RETA:NASDAQ) and Blackstone Group Inc. (BX:NYSE) today announced that "funds managed by Blackstone Life Sciences will lead a $350 million royalty and equity investment in Reata to fund the development and potential commercialization of bardoxolone methyl, an investigational once-daily oral therapy being studied for chronic kidney disease (CKD) in Alport syndrome and autosomal dominant polycystic kidney disease (ADPKD)." The firms advised that these are life-threatening diseases with few or no effective U.S. Food and Drug Administration (FDA) approved therapies.

Global Head of Blackstone Life Sciences Nicholas Galakatos, Ph.D., stated, "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."

Reata's CEO and President Warren Huff commented, "Bardoxolone has been a primary focus of our company's research and development efforts to date...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."

Paris Panayiotopoulos, senior managing director of Blackstone Life Sciences, added, "Bringing the first potential therapy to Alport syndrome patients, a devastating genetic condition with no approved treatments, is very motivating...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."

Under the terms of the investment agreement, Blackstone Life Sciences will invest $300 million in Reata in return for certain royalty payments on worldwide bardoxolone net sales made by Reata and its licensees with the exception of sales by Kyowa Kirin Co. Ltd. As part of the deal, Blackstone Life Sciences will invest $50 million to buy 340,793 shares of Reata's Class A common stock at a price of $146.72 per share. The transaction is expected to close on or before June 24, 2020, with Reata receiving the $350 million investment upon closing.

Reata's COO and CFO Manmeet S. Soni remarked, "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."

The company explained that "bardoxolone methyl 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, and that the FDA has granted Orphan Drug designation to bardoxolone for the treatment of Alport syndrome and ADPKD."

Reata Pharmaceuticals is a clinical-stage biopharmaceutical company based in Plano, Tex., that focuses on developing medicines for patients with serious or life-threatening diseases. The firm's therapeutics target molecular pathways that are involved regulation of cellular metabolism and inflammation.

Blackstone Life Sciences is a private, global investment firm that invests in numerous companies and products in the life science sectors.

Reata Pharmaceuticals has a market capitalization of around $4.4 billion with approximately 33.24 million shares outstanding and a short interest of about 11%. RETA shares opened 26% higher today at $165.00 (+$34.08, +26.03%) over yesterday's $130.92 closing price. The stock has traded today between $156.99 and $177.48 per share and is currently trading at $171.24 (+$40.32, +30.80%).


1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Want to read more about Biotechnology / Pharmaceuticals investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe