Cases / Investigations

Reata Pharmaceuticals, Inc.


Wolf Popper LLP Announces Investigation on Behalf of Purchasers of Reata Pharmaceuticals, Inc. (RETA) Common Stock

NEW YORK, December 7, 2021

Wolf Popper LLP is investigating potential securities fraud claims on behalf of purchasers of Reata Pharmaceuticals, Inc. (NASDAQ: RETA) common stock.

Reata is a clinical-stage drug company.  Reata’s lead program is developing the drug bardoxolone methyl for the treatment of chronic kidney disease caused by Alport syndrome (“AS”). In August 2017, Reata announced it enrolled the first patient in the Phase 3 portion of its CARDINAL trial of bardoxolone methyl. In July 2018, Reata announced positive Phase 2 data from its CARDINAL trial. In June 2020, Reata announced Blackstone Life Sciences was leading a $350 million royalty and equity investment in Reata to fund the development and potential commercialization of bardoxolone methyl. On March 1, 2021, Reata announced it had submitted a New Drug Application for bardoxolone methyl based on the efficacy and safety data from the CARDINAL Phase 3 clinical trial and an Advisory Committee meeting was scheduled for December 8, 2021.

Reata’s stock price, in reliance on the truth and accuracy of Reata’s public statements, closed on Friday, December 3, 2021 at $78.69 per share. 

Before the market opened on Monday, December 6, 2021, an FDA Briefing Document was posted on the FDA’s website. The Briefing Document was prepared for the Cardiovascular and Renal Drugs Advisory Committee and would be used in the December 8, 2021 meeting to determine whether to approve bardoxolone methyl.

The Briefing Document said “During the course of development, the FDA voiced concern about the design of CARDINAL Phase 3 and specifically the ability of the trial, as designed, to differentiate bardoxolone’s pharmacodynamic effect on kidney function from its effect on disease progression.” Furthermore, the Briefing Document said “the FDA review team does not believe the submitted data demonstrate that bardoxolone is effective in slowing the loss of kidney function in patients with AS and reducing the risk of progression to kidney failure. In addition to the concerns with CARDINAL Phase 3, there are no data in this application from an animal model of Alport syndrome or other adequate and well-controlled clinical trials in AS or [chronic kidney disease] that show that bardoxolone slows the loss of kidney function.”

On this news, Reata’s stock price dropped 37.8% and closed on December 6, 2021 at $48.92 per share.

For more information, Reata investors with trading losses of over $50,000 should contact Joshua Ruthizer at (212) 451-9668 or at jruthizer@wolfpopper.com.

Wolf Popper has successfully recovered billions of dollars for defrauded investors.  Wolf Popper’s reputation and expertise have been repeatedly recognized by the courts, which have appointed the firm to major positions in securities litigation.  For more information about Wolf Popper, please visit the Firm’s website at www.wolfpopper.com.

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Wolf Popper LLP
Joshua Ruthizer
845 Third Avenue
New York, NY 10022
Tel.: (212) 451-9668
Email: jruthizer@wolfpopper.com


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