Reata Bardoxolone Trial Success Likely, But Still Just A Hold

May 24, 2019 9:29 AM ETReata Pharmaceuticals, Inc. (RETA)10 Comments
William Meyers profile picture
William Meyers


  • Reata Pharmaceuticals is readying for its first potential FDA product approval and launch.
  • Lead candidate bardoxolone should report Phase 3 data in 2019.
  • Hold; risks are too high at current price to recommend buying.

Reata Pharmaceuticals (NASDAQ:RETA) is a late clinical stage biotechnology company with a chronic kidney disease therapy due to release results later this year. I last wrote about it in Reata Pharmaceuticals A Buy On Bardoxolone Data back in February 2018. The stock price then was $26.73 per share. Now [close of May 22, 2019] it is $91.35. In this article I reevaluate Reata and argue that at the current price it is just a hold, at least until we see a positive outcome to its Phase 3 trial.

Here is now the stock price has unfolded in the past 3 years:

ChartData by YCharts

Lead indication: Bardoxolone for Chronic Kidney Disease caused by Alport Syndrome

Alport Syndrome is a rare genetic disorder that causes kidney disease, leading to death. The mutant gene causes the production of a mutant collagen. Bardoxolone is an Nrf2 activator that normalizes mitochondrial functions. In chronic kidney disease this can restore balance, reduce inflammation, and reduce fibrosis. In Phase 2 trials bardoxolone data indicated it is safe and effective, increasing the filtration rate significantly. The Phase 3 CARDINAL trial completed enrollment. Top line data is expected before the end of 2019. Full data would be reported after that at a science conference, followed by submitting the drug for approval by the FDA.

Bardoxolone has orphan drug status for this indication, which will mean orphan drug pricing. The exact pricing will not be announced until after FDA approval, if that occurs. Revenue might be significant, but that depends on pricing, the exact label, and adoption by doctors.

Because it works on a very fundamental level, if it helps with Alport Syndrome, there is a good chance that it will help with other diseases, and not just of the kidney.

Bardoxolone for Pulmonary Arterial Hypertension and ADPDK

PAH, or

This article was written by

William Meyers profile picture
I provided stock and bond research and analysis to a small cap specialist investor, Lloyd Miller, from 2002 until his death in January 2018. For my own account I invest mainly in technology and biotechnology stocks. My technology and investment web site is, where readers can view the notes I take to make decisions and to write articles for Seeking Alpha.

Disclosure: I am/we are long RETA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (10)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.