NEW YORK and PLANO, Texas, June 11, 2020 (GLOBE NEWSWIRE) -- Blackstone (NYSE: BX) and Reata Pharmaceuticals, Inc. (Nasdaq: RETA), a clinical-stage biopharmaceutical company, 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 in Alport syndrome, autosomal dominant polycystic kidney disease, and other associated potential future indications. These are severe, life-threatening diseases with few or no effective therapies approved by the U.S. Food and Drug Administration.

Nicholas Galakatos, Ph.D., Global Head of Blackstone Life Sciences, said, “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.”

“Bardoxolone has been a primary focus of our company’s research and development efforts to date,” said Warren Huff, Reata’s Chief Executive Officer and President. “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.”

“Bringing the first potential therapy to Alport syndrome patients, a devastating genetic condition with no approved treatments, is very motivating,” said Paris Panayiotopoulos, Blackstone Life Sciences Senior Managing Director. “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.”

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.

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.

About Reata Pharmaceuticals, Inc.

Reata is a clinical-stage biopharmaceutical company that develops novel therapeutics for patients with serious or life-threatening diseases by targeting molecular pathways involved in the regulation of cellular metabolism and inflammation. Reata’s two most advanced clinical candidates, bardoxolone and omaveloxolone, target the important transcription factor Nrf2 that promotes restoration of mitochondrial function, reduction of oxidative stress, and inhibition of pro-inflammatory signaling. Bardoxolone and omaveloxolone are investigational drugs, and their safety and efficacy have not been established by any agency.

About Blackstone Life Sciences

Blackstone Life Sciences is a private, global investment platform with capabilities to invest across the life-cycle of companies and products within the key life science sectors. By combining scale investments and hands-on operational leadership, Blackstone Life Sciences helps bring to market promising new medicines and medical products that improve patients’ lives.