Reata Pharmaceuticals, a US-based drug producer backed by pharmaceutical firms Novo and AbbVie, filed for an initial public offering yesterday that could raise up to $80m.
Founded in 2002, Reata is developing drugs to treat conditions such as pulmonary arterial hypertension, characterised by increased blood pressure that leads to shortness of breath, dizziness and other symptoms.
Reata has secured $480m in funding, including $78m from a 2010 round co-led by Novo and investment adviser CPMG in 2010.
The company inked a $450m collaboration agreement with healthcare company Abbott Laboratories in the same year which was extended by an additional $400m in 2011. AbbVie was spun out of Abbott in 2012 and took the firm’s stake in Reata with it as part of the deal.
Pharmaceutical firm Kyowa Hakko Kirin signed a $272m licensing agreement with Reata in 2010. Reata’s other investors include University of Texas, Cardinal Investment, Ojai Goliad, Redbird Life Sciences and Startech Ventures.
Novo currently holds a 16.4% stake in Reata, while AbbVie owns 10.3% and CPMG 13.7% stake.
The proceeds from the IPO will go towards further clinical development of Reata’s preclinical drug candidates, and to clinical trials for several of its more advanced candidates.
Citigroup, Cowen and Piper Jaffray are serving as joint book-running managers for the offering.