Reata Pharmaceuticals, Inc., (RETA) develops innovative therapeutics for patients with life-threatening renal and cardiovascular diseases, by targeting molecular pathways involved in the regulation of cellular metabolism and inflammation. Reata’s two most novel clinical contenders are bardoxolone and omaveloxolone.
The stock price of RETA during regular trading hours of December 8, 2021, was $54.42 while at the time of writing on December 9, 2021, the regular trading session showed an abrupt decline of 44.77% to $30.06.
Events and Happenings
On December 8, RETA announced the outcome of the meeting with the Cardiovascular and Renal Drugs Advisory Committee of the Food and Drug Administration (FDA) which was held on December 6, 2021, regarding bardoxolone for the cure of Chronic Kidney Disease (CKD) which is caused by Alport Syndrome. The committee did not support the notion of the company and also noted that the benefits of the drug outnumber its risks. But the RETA management was hopeful that it will convince the FDA officials. After the news broke on December 6, 2021, the stock price of RETA declined sharply from $73 to $51.9.
On November 19, 2021, RETA announced the U.S. Food and Drug Administration (“FDA”) has granted Fast Track Designation to the company for omaveloxolone for the treatment of Friedreich’s ataxia. The fast-track program is designed to accelerate the development and review of products such as omaveloxolone, which are intended to treat serious diseases and for which there is an unmet medical need.
On November 8, 2021, RETA announced financial results for the third quarter ended September 30, 2021. Some of the crucial financial highlights are:
- Cash and cash equivalents of $713.2 million were reported for Q3 2021.
- Total assets of the company reported were $731 million during the third quarter of 2021.
- Net loss as stated by the company was $71 million for Q3 2021 as opposed to the same quarter of 2020 when it was $65 million.
- Total collaboration revenue for Q3 2021was $7.3 million against $1.4 million for Q3 2020.
- Total expenses for Q3 2021 were $65 million versus the same quarter of 2020 when they were $55 million
Although the stock of RETA plunged to 65% from June until now according to some analysts, hopefully, the fast track designation is given to the company and other collaborations may prove beneficial for the company in the forthcoming year.