By Marie Daghlian
Reata Pharmaceuticals is filling its coffers ahead of late stage trials with a lucrative deal for its mid-stage treatment for chronic kidney disease. The private Irving, Texas-based biopharma is granting Abbott Laboratories (NYSE:ABT) exclusive rights to develop and commercialize bardoxolone outside the United States, excluding certain Asian markets. In return, Reata will receive $450 million in upfront and near-term payments, and a minority equity investment in the company.
Under the terms of the agreement, Reata will be eligible for additional unspecified milestone payments and royalties on any future product sales. The deal also gives Abbott licensing rights to other compounds in Reata’s pipeline for chronic kidney disease, and for cardiovascular and metabolic indications, in the licensed territories.
“This partnership allows us to meet our strategic goal of establishing our own commercial presence in the United States and building a sustainable, fully integrated pharmaceutical company,” says Warren Huff, CEO of Reata.
With this deal, Reata has brought in more than $500 million in the past year, including licensing the rights to develop and commercialize bardoxolone in Japan and certain Asian markets to Kyowa Hakko Kirin for $35 million upfront last January, and completing a $78 million private equity financing in July.
Bardoxolone is an oral, first-in-class antioxidant inflammation modulator that was originally developed as a cancer treatment. However, in one study researchers noticed a marked improvement in kidney function among all renal cancer patients. The company decided to focus on this aspect and mounted two mid-stage trials in 2008, which were completed last year. Results showed bardoxolone significantly improved kidney function in patients with advanced chronic kidney disease and type 2 diabetes.
Chronic kidney disease currently affects more than 50 million adults worldwide, and the number of patients is rapidly increasing throughout the world—making the drug a potential blockbuster.
Medical device company Asthmatx’s agreed to be acquired by Boston Scientific (NYSE:BSX) in a structured deal worth as much as $443.5 million. Boston Scientific is paying $193.5 million cash upfront and up to $250 million contingent upon achievement of specified revenue-based milestones through 2019.
Asthmatx designs, manufactures and markets a less-invasive, catheter-based bronchial thermoplasty procedure for the treatment of severe persistent asthma in adults whose asthma is not well controlled with drugs. The company received U.S. Food and Drug Administration approval to market its system in April.
Other biotechs garnered their cash from VCs. Immatics Biotechnologies raised $71 million in a series C financing round from Dievini Hopp Biotech, Wellington Partners and other existing shareholders, and new investors MIG-advised funds and AT Impf. The money will allow the company to start a late-stage trial of its lead therapeutic cancer vaccine candidate in renal cell carcinoma, and continue development of its pipeline of therapeutic vaccines. Immatics presented mid-stage results at the ASCO meeting in June.
immatics' technology platform rapidly generates defined therapeutic cancer vaccines which are based on multiple tumor-associated peptides with the ability to specifically stimulate the immune system against cancer cells. Based in Tuebingen and Munich, the German biotech has raised more than $130 million in private equity in three financing rounds.
Santa Barbara-based CytomX Therapeutics completed a $30 million series B round of financing led by Third Rock Ventures, with participation from the Roche Venture Fund. The money will enable the company advance its Probodies antibody platform and expand its current team of eight and move to the San Francisco Bay area by the end of the year. The company hopes to develop more effective and less toxic therapies for severe illnesses such as cancer and inflammatory diseases.
The U.S. government is another source of funding, especially for companies developing solutions to bioterror threats. Emergent BioSolutions (NYSE:EBS) signed a five year contract with the Biomedical Advanced Research and Development Authority of the Department of Health and Human Services, valued at up to $186.6 million for the development of a recombinant protective antigen anthrax vaccine.
The contract consists of a two-year base period of performance valued at approximately $51 million, three successive one-year option periods valued at approximately $126 million, and funding for optional non-clinical studies valued at approximately $9 million.
Emergent's anthrax vaccine candidate is a purified recombinant protective antigen protein formulated with an alum adjuvant and is designed to induce antibodies that neutralize anthrax toxins. The company has already received two research and development grants valued at $100 million for development of the vaccine from the National Institute of Allergy and Infectious Diseases. The company also markets the only approved vaccine for the prevention of anthrax infection.
Deals for the Week Ending September 27, 2010
|Global Venture Financings|
|Company||Location||Amount Raised (USD M))||Principal Focus|
|immatics biotechnologies||Tuebingen, Germany||71.0||Cancer vaccines|
|CytomX Therapeutics||Santa Barbara, CA||30.0||Antibodies|
|Phenex Pharmaceuticals||Heidelberg, Germany||22.4||Autoimmune therapeutics|
|Nora Therapeutics||Owings Mill, MD||14.8||Women's health|
|NewBridge Pharmaceuticals||Dubai, United Arab Emirates||12.0||Pharmaceuticals|
|Cylene Pharmaceuticals||San Diego, CA||12.0||Cancer therapeutics|
|Boston Heart Lab||Framingham, MA||10.0||Cardiovascular medical devices|
|Arterial Remodeling Technologies||Paris, France||8.5||Bioresorbable stents|
|MemfoACT||Norway||4.3||Renewable fuels technology|
|Cardoz||Stockholm, Sweden||3.3||Cardiovascular therapeutics|
|Q Chip||Cardiff, United Kingdom||3.1||Microfluidics|
|Chronix Biomedical||San Jose, CA||1.8||Biomarkers|
|FluimediX||Taastrup, Denmark||N/A||Point-of-care diagnostics|
|Total Raised US||68.6|
|Total Raised Non-US||129.6|
|Grants and Contracts|
|Company||Funding/Contracting Agency||Amount Raised (USD M)||Principal Focus|
|Renewable Algal Energy||US DOE Small business Phase III Xlerator||3.0||Renewable fuels|
|KSE||US DOE Small business Phase III Xlerator||1.0||Renewable fuels|
|Semprus Biosciences||National Science Foundation||0.5||Surface modification|
|TiGenix (Belgium)||UK National Institute for Health Research||1.3||Biomaterials|
|Signum Biosciences||NIH NIAMS SBIR||0.7||Skin disorders|
|Biosearch Technologies||U.S. DoD Phase II SBIR||0.8||Oligonucleotides|
|QR Pharma||NIH National Institute on Aging||0.2||Alzheimer's disease|
|GeneGo||National Institute on Drug Abuse||N/A||Systems biology|
|Sophic Systems Alliance||National Cancer Institute||0.8||Personalized medicine|
|W. R. Grace||US Department of Energy||3.3||Biofuel technology|
|PTC Therapeutics||FDA Office of Orpan Products Development||1.6||Cystic fibrosis|
|Cerus||US Department of Defense||1.4||Hematology|
|Advanced Targeting Systems||National Cancer Institute||3.0||Cancer pain|
|Emergent BioSolutions||HHS BARDA (contract value $186.6 million)||51.0||Anthrax Vaccine|
|Peregrine Pharmacetuicals||US DoD DTRA||2.4||Cancer therapeutics|
|Rapid Micro Biosystems||HHS BARDA (contract value $6.7 million)||2.2||Microbial detection|
|Total Grants and Contracts||73.2|
Raised (USD M)
|Anthera Pharmaceuticals ||ANTH||31.5||PIPE|
|New Generation Biofuels||NGBF||0.5||PIPE-RDO|
|NPS Pharmaceuticals||NPSP||47.5||Follow on|
|Warner Chilcott (Ireland)||WCRX||500.0||Debt|
|MethylGene (Canada)||TSX:MYG||15.0||Equity line facility|
|Movetis (Belgium)||Euronext:MOVE||2.9||Warrant exercise|
|Pernix Therapeutics||PTX||10.0||Credit facility|
|Curaxis Pharmaceutical||OTC:CURX||25.0||Equity line facility|
|Miraculins (Canada)||TSX-V:MOM||0.9||Warrant exercise|
|Renewable Energy Group||Private||8.0||Strategic investment by ARES|
|TOTAL PUBLIC FINANCINGS-US||3,216.0|
|Acquirer||Target||Deal Value |
|Boston Scientific||Asthmatx||443.5||Respiratory medical devices|
|Warner Chilcott (Ireland)||Novartis (Switzerland)||400.0||Drug rights|
|Prestige Brands||Blacksmith Brands||190.0||OTC products|
|Meda (Sweden)||BioPhausia (Sweden)||28.0||OTC products|
|Elder Pharmaceuticals (India)||NeutraHealth (United Kingdom)||15.0||Generics|
|Amedica||US Spine||N/A||Medical devices|
|Royal DSM (Netherlands)||Microbia (Ironwood Pharma)||N/A||Industrial/Ag|
|NeoStem||Progenitor Cell Therapy||N/A||Stem cells|
|Company/Licensee||Company/Licenser||Deal Value |
|Tenaska BioFuels||BlueFire Renewables||500.0||Renewable fuels contract|
|Fiberight||TMO Renewables (United Kingdom)||500.0||Renewable fuels contract|
|Abbott Laboratories||Reata Pharmaceuticals||450.0||Renal drug marketing rights|
|RHEI Pharmaceuticals (China)||Access Pharmaceuticals||30.0||Cancer drug supply agreement|
|Lundbeck (Denmark)||Intomics (Denmark)||N/A||Bioinformatics collaboration|
|GlaxoSmithKline (United Kingdom)||Dendreon||N/A||Cancer vaccine supply agreement|
|GlaxoSmithKline (United Kingdom)||Delphi Genetics (Belgium)||N/A||Technology license|
|RXi Pharmaceuticals||EyeGate Pharma||N/A||Ocular drug delivery collaboration|
|Array BioPharma||Signal Genetics||N/A||Companion Dx partnership|
|Stryker||Vision Sciences||N/A||Medical device supply agreement|
|Thermo Fisher Scientific||Proteome Sciences||N/A||Biomarkers collaboration|
|Pfizer||Icagen||N/A||Pain therapeutics deal extension|
|Royal DSM (Netherlands)||Crucell (Netherlands)||N/A||Biobetter proteins joint venture|
|Royal DSM (Netherlands)||DuPont||N/A||Biomaterials joint venture|
|BASF (Germany)||Solix Biofuels||N/A||Renewable chemicals collaboration|
|Diaceutics||London Genetics (United Kingdom)||N/A||Personalized medicine partnership|