Abbott agrees $400m chronic disease deal with Reata

Abbott has signed a major co-development deal for a portfolio of molecules that target pulmonary and central nervous system disorders, as well as immunology conditions.

The pharma company will make a one-off payment of $400m to Texas, US-based Reata Pharmaceuticals for its second-generation oral antioxidant inflammation modulators (AIMs).

"This deal helps Reata advance new molecules into clinical development in multiple important diseases and enables our company to build a global commercial presence," explained the company's CEO Warren Huff.

The two companies will develop the molecules across a range of therapy areas, and share costs and profits equally for all developed AIMs, with the exception of rheumatoid arthritis and select other autoimmune diseases.

For these conditions, Abbott will take 70 per cent of costs and profits, while Reata will take 30 per cent.

AIMs are thought to be beneficial in the treatment of certain chronic diseases by promoting the production of a range of range of antioxidant, detoxification, and anti-inflammatory genes as well helping to control the production of pro-inflammatory enzymes. It does this though activating the protein Nrf2 which plays a role in both aspects of treatment.

Dr John Leonard, senior vice president of pharmaceuticals research and development at Abbott, said: "Accumulating data has established the potential for antioxidant inflammation modulators in neuroscience and immunology, and we look forward to expanding our knowledge through further research."

Abbott and Reata already have an existing partnership, with Abbott holding exclusive rights to develop and commercialise Reata's lead AIM compound, bardoxolone methyl, outside of the US. The new deal will not affect the terms of this agreement.

It is expected that the first compound in the new collaboration will enter human clinical trials in 2012.