Abbott Labs Spends $400M on Reata Development Deal

Tallahassee, FL 12/12/11 (StreetBeat) --Drug and medical device maker Abbott Laboratories (NYSE:ABT) said Monday it spent $400 million to collaborate with Reata Pharmaceuticals on the development of the privately held company's class of oral anti-inflammatory drugs.

Abbott, based in North Chicago, Ill., said Reata is developing a portfolio of antioxidant inflammation modulators, which help boost the production of antioxidant, detoxification, and anti-inflammatory genes. The potential drugs cover a range of therapeutic areas, including pulmonary, central nervous system disorders and immunology.

Abbott made a one-time license payment of $400 million to the Irving, Texas, company.

The companies said the agreement is in addition to one they entered into last year in which Abbott received exclusive rights to develop and sell Reata's lead compound, bardoxolone methyl, outside the United States except in some Asian markets. Bardoxolone methyl is being studied in a late-stage clinical trial of patients with chronic kidney disease and type 2 diabetes.

Abbott and Reata expect the first compound from their new collaboration to start human clinical trials next year.

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