Reata Pharma Files for Secondary Offering

By Chris Lange Updated Jan 12, 5:04PM EST · Published Dec 6, 10:45AM EST

Reata Pharma Files for Secondary Offering — © Thinkstock

Reata Pharmaceuticals Inc. (NASDAQ: RETA) has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for a secondary offering. The company did not disclose any pricing data, except that the offering is valued at roughly $86.25 million. The most recent closing price was $25.79 a share.

The underwriters for the offering are Citigroup, Cowen and Piper Jaffray.

This clinical stage biopharmaceutical company is focused on identifying, developing and commercializing product candidates to address rare and life-threatening diseases with few or no approved therapies by targeting molecular pathways that regulate cellular metabolism and inflammation. Its lead product candidates, bardoxolone methyl and omaveloxolone, are members of a class of small molecules called antioxidant inflammation modulators and target an important transcription factor, called Nrf2, to restore mitochondrial function, reduce oxidative stress, and inhibit pro-inflammatory signaling. Bardoxolone methyl is currently being studied in a Phase 3 trial, known as CATALYST, for the treatment of pulmonary arterial hypertension (PAH) associated with connective tissue disease, which began enrolling patients in October 2016.

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Bardoxolone methyl is also being studied in a Phase 2 trial known as LARIAT, for the treatment of pulmonary hypertension due to interstitial lung disease and PAH, each of which are subsets of pulmonary hypertension. In addition, the company recently met with the U.S. Food and Drug Administration (FDA) and received guidance on endpoints and general design for a single, pivotal Phase 2/3 trial utilizing bardoxolone methyl for the treatment of chronic kidney disease, caused by Alport syndrome. Omaveloxolone is being studied in Phase 2 trials for the treatment of multiple diseases, including Friedreich’s ataxia, mitochondrial myopathies and metastatic melanoma, known as MOXIe, MOTOR and REVEAL, respectively.

The company intends to use the net proceeds from the offering to further develop its pipeline, with the remainder going toward working capital and general corporate purposes.

Shares of Reata Pharma were last seen down 2.8% at $25.07, with a consensus analyst price target of $40.00 and a 52-week trading range of $11.03 to $41.60.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.