Reata Pharmaceuticals (Reata) and Kyowa Hakko Kirin have entered into a licensing agreement that provides the latter with the exclusive rights to develop and commercialise Reata’s lead compound, bardoxolone methyl (bardoxolone), in Japan and other selected Asian markets.
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.
As per the agreement, Reata is eligible to receive up to $272m in up-front fees and milestone payments, in addition to double-digit royalties. Kyowa Hakko Kirin is expected to have the exclusive rights to develop, market, and sell bardoxolone for CKD and related indications in Japan, China, Taiwan, Korea, and Southeast Asian countries.
Whereas, Reata retains the rights to develop and commercialise bardoxolone in all other territories, including the US, Europe, Latin America. Reata will receive $132m in development milestones, including an up-front payment of $35m.
Furthermore, Reata 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.
Warren Huff, CEO of Reata, said: “We are looking forward to collaborating with Kyowa Hakko Kirin to bring bardoxolone to market for the millions of Asian patients who have CKD and face dialysis without effective treatment options.”
Ken Yamazumi, COO of Kyowa Hakko Kirin, said: “We are very excited by the medical and commercial opportunity presented by bardoxolone in CKD and related diseases. The Phase 2 data with bardoxolone suggests for the first time that a drug may be able to arrest or reverse progression of the disease. We are looking forward to the opportunity to deliver the benefit of this novel medicine to patients in Asia through this partnership with Reata.”