Bardoxolone methyl, which is currently in late Phase 2 trials, is an oral, antioxidant inflammation modulator that works by increasing the estimated glomerular filtration rate (eGFR) of the kidneys.
As per the terms of the agreement, Reata Pharma is expected to grant an exclusive rights to Abbott for the development and commercialisation Bardoxolone outside the US, excluding certain Asian markets.
Under the agreement, Abbott is expected to pay a sum of $450m as an upfront and near-term cash payment for the licensing rights to Bardoxolone and a minority equity investment in the company.
Upon completion of certain development and approval objectives for bardoxolone and other molecules in the licensed territories, Reata will receive additional milestone payments. Reata also will receive royalties on any future product sales in the Abbott territories.
Additionally, Abbott obtains rights to develop and commercialise certain other Reata compounds for chronic kidney disease, and for cardiovascular and metabolic indications, in these territories.
Abbott senior vice president of Pharmaceuticals R&D said that early clinical studies suggest that Bardoxolone could be a significant improvement to the current standard of care for CKD and possibly prevent patients from progressing to the later stages of the disease and dialysis.