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Reata Pharmaceuticals regains rights to genetic disorder therapies from AbbVie

Reata Pharmaceuticals Inc. regained the rights to a proprietary Nrf2 activator product platform, being developed to treat certain genetic conditions and originally licensed to AbbVie Inc., by agreeing to pay $330 million in cash.

Texas-based Reata will now have exclusive, worldwide rights to bardoxolone methyl, omaveloxolone and all other next-generation Nrf2 activators, excluding certain Asian markets wherein Kyowa Kirin Co. Ltd. holds the license for bardoxolone.

Bardoxolone methyl and omaveloxolone are investigational therapies that target the Nrf2 protein, which stimulates mitochondrial function, reduction of oxidative stress and inhibition of pro-inflammatory signaling.

Reata will make an up-front payment of $75 million in 2019, with the remainder payable in installments in the second quarter of 2020 and in the fourth quarter of 2021. North Chicago, Ill.-based AbbVie will also receive low single-digit, tiered royalties from worldwide sales of omaveloxolone and certain next-generation Nrf2 activators, and no royalties on bardoxolone.

Additionally, Reata agreed to an amendment loan and security agreement with Oxford Finance LLC and Silicon Valley Bank allowing for $75 million upon positive data from either the Cardinal study of bardoxolone methyl in Alport syndrome or the MOXIe study of omaveloxolone in Friedreich's ataxia. The term loan facility increased to $155 million from $125 million.

Alport syndrome is a genetic condition characterized by kidney disease, hearing loss and eye abnormalities. Friedreich's ataxia, another inherited disease, causes progressive nervous system damage and movement problems.