Reata Pharmaceuticals Repositions Itself for Success
It's been a busy October for Reata Pharmaceuticals (NASDAQ: RETA), which kicked things off Oct. 10 with the announcement that it would end its nine-year partnership with AbbVie (NYSE: ABBV). This move allows Reata to reclaim the exclusive rights to two drugs in late-stage clinical trials, as well as next-generation drugs that use the same mechanism. Days later, Reata surprised much of Wall Street with positive results from a pivotal clinical trial for omaveloxolone (omav) as a treatment for Friedreich's ataxia, a neuromuscular disease with no approved treatment options. The stock surged 60% following the announcement, adding roughly $1.5 billion to the company's valuation.
While the euphoria of the positive clinical results from omav sets in, investors new to the company must evaluate where Reata can go from here and whether the valuation remains compelling.
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Source Fool.com
