Reata Pharma licenses CKD drug bardoxolone to Kyowa Hakko Kirin in $272 million deal for Asian territories

US drug developer Reata Pharmaceuticals has entered into a licensing agreement that provides Japan's Kyowa Hakko Kirin with the exclusive rights to develop and commercialize Reata's lead compound, bardoxolone methyl, in Japan and other selected Asian markets. Under the terms of the deal, Reata is eligible to receive up to $272 million in up-front fees and milestone payments, in addition to double-digit royalties.

Specifically, Kyowa Hakko Kirin will have the exclusive rights to develop, market, and sell bardoxolone for chronic kidney disease (CKD and related indications in Japan, China, Taiwan, Korea, and Southeast Asian countries. Irving, Texas-headquartered Reata retains the rights to develop and commercialize the compound in all other territories, including the USA, Europe, Latin America and Asian markets not licensed to Kyowa Hakko Kirin. Reata will receive $132 million in development milestones, including an up-front payment of $35 million. The US firm will also be entitled to receive up to $140 million in sales milestones as well as escalating double-digit royalties from Kyowa Hakko Kirin sales in the licensed territories.

Bardoxolone activates the Nrf2 gene, which controls the production of over 250 antioxidant and detoxification proteins. Activation of Nrf2 protects tissues by increasing cellular antioxidant content and suppressing inflammatory signaling pathways. It is now known that chronic 'metabolic inflammation' promotes type 2 diabetes and its complications, including cardiovascular disease and CKD.