Press Release: Reata Pharmaceuticals Closes $25 Million in Series E Funding
Reata Pharmaceuticals Closes $25 Million in Series E Funding IRVING, Texas -- Jul 6, 2007 - Reata Pharmaceuticals, Inc ("Reata"), a biopharmaceutical company developing novel drugs for cancer, inflammation and neurodegenerative diseases, today announced the closing of a $25.0 million private financing round. The financing round was led by existing investors, including CPMG, Inc. and Novo A/S. Reata plans to use the proceeds from the financing to advance its pipeline, including funding multiple Phase 2 studies of the company's two lead development candidates, RTA 402 and RTA 744. Each of these drugs is a novel therapy that has achieved clinical proof of concept in high-value cancer indications. RTA 402 is also in development for inflammatory disease indications including hepatitis and rheumatoid arthritis. In addition to these lead programs, Reata has a pipeline of preclinical candidates for cancer, inflammation, and neurodegenerative diseases as well as an innovative discovery platform based on the concept of correcting protein misfolding through the use of small molecule chaperones. Kent McGaughy, Partner with CMPG, Inc., commented, "Reata has an unusually deep pipeline, both in comparison to similar stage companies and in comparison to larger, more established companies. We are impressed by the quality of the pipeline, and by the efficiency with which the management team has invested to advance it." Jack Nielsen, Partner with Novo A/S, added, "We are very impressed with the quality of Reata's technologies. The lead programs as well as the discovery platform have the potential to be real breakthroughs from both a scientific and commercial perspective." "We are very pleased that our existing investors continue to see the high potential of Reata's product pipeline," said Warren Huff, President and Chief Executive Officer of Reata. "This new financing, together with our existing cash, will allow us to make substantial progress in advancing both RTA 402 and RTA 744 toward registration studies. It also allows us to continue investing in our discovery program, which recently met a key milestone by producing our first internally generated preclinical lead." RTA 402 is a novel, orally administered agent that regulates NF-(kappa)B and STAT3, transcription factors implicated in both inflammation and cancer. This mechanism of action is highly novel and has broad applicability across numerous high-value indications. RTA 402 has demonstrated excellent activity and a good safety profile in a Phase 1 study in cancer patients. Phase 2 clinical trials in melanoma, pancreatic cancer, hepatitis, and rheumatoid arthritis are underway or scheduled for initiation by the end of 2007. In addition to RTA 402, RTA 404, is in advanced preclinical development for multiple sclerosis, neurodegenerative diseases, and brain cancer. RTA 744 is a novel anti-cancer drug that crosses the blood-brain barrier and shows significant potential for the treatment of primary and metastatic brain cancers. Other drugs in this class such as doxorubicin are among the most broadly used and effective classes of cancer therapies; however, they have not been used to treat brain cancers because they do not cross the blood-brain barrier. RTA 744 has produced impressive results in a Phase 1 clinical trial in patients with primary brain tumors. Phase 2 studies are now being initiated in patients with breast cancer that has spread to the brain. About Reata Reata Pharmaceuticals, Inc. is a biopharmaceutical company focused on selecting and discovering promising early drug development opportunities and translating them into successful marketed drugs that target major unmet clinical needs in cancer, inflammation and neurodegenerative disease. The company's two lead programs are entering advanced clinical trials for deadly, late-stage cancers. In parallel with its clinical development, Reata is advancing a breakthrough drug discovery platform using protein misfolding, identified as a key factor in cancer and neurodegenerative disease, to feed its pipeline of small molecule therapeutic candidates. Reata manages its pipeline as a portfolio of opportunities that can be advanced on a single management and physical infrastructure, streamlining the route to human trials and approval. Founded in 2002, Reata is based in the Dallas area. For more information, visit www.reatapharma.com.