ARTICLE | Product Development
Reata rebound
Blackstone deal follows a roller-coaster ride for bardoxolone that has stretched across a decade
June 12, 2020 3:02 AM UTC
Shares of Reata Pharmaceuticals Inc. (NASDAQ:RETA) rose $36.76 (28%) to $167.68 on Thursday following a $350 million investment from Blackstone Life Sciences. The deal, which includes a $50 million equity investment and a $300 million royalty sale, is expected to extend the renal company’s runway through 2023.
The equity component comes from the sale of 340,793 Class A shares at $146.72, a 12% premium the stock’s close Wednesday, before the deal was announced. Based on Reata’s 1Q20 10-Q filing, the new shares represent about a 1.2% stake in the company...