Abbott enters $450 million deal with Reata Pharma to gain rights to methyl for kidney disease outside USA

US health care major Abbott Laboratories (NYSE: ABT) has signed a deal with Reata Pharmaceuticals to develop and commercialize bardoxolone methyl which is currently in late Phase II trials for the treatment of chronic kidney disease (CKD).

Under terms of the agreement, Reata will grant to Abbott exclusive rights to develop and commercialize bardoxolone outside the USA, excluding certain Asian markets. Reata will receive upfront and near-term cash payments of $450 million for the licensing rights to bardoxolone and a minority equity investment in the company. On completion of certain development and approval objectives for bardoxolone and other molecules in the licensed territories, Reata will receive additional milestone payments. It will also be eligible for royalties on any future product sales in the Abbott territories. Additionally, Abbott obtains rights to develop and commercialize certain other Reata compounds for chronic kidney disease, and for cardiovascular and metabolic indications, in these territories.

Builds on Abbott’s renal care pipeline