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Reata Pharmaceuticals: One of Best-Performing Biotech Stocks YTD

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Growth trends for Reata Pharmaceuticals

Reata Pharmaceuticals (RETA) is one of the best-performing biotechnology companies, rising 218.71% YTD (year-to-date). It’s involved in the evaluation of several investigational drugs, including first-in-class Nrf2, RORγt, and Hsp90 modulators that target diseases with high unmet demands.

Reata Pharmaceuticals is currently involved in the following three pivotal trials:

  • Phase 2/3 CARDINAL trial evaluating bardoxolone methyl in a rare chronic kidney disease (or CKD) due to Alport syndrome
  • Phase 2 MOXIe trial evaluating Omav in Friedreich’s Ataxia
  • Phase 3 CATALYST trial evaluating bardoxolone methyl in connective tissue disease-associated pulmonary arterial hypertension (or CTD-PAH)

Data from the CARDINAL trial is anticipated in the second half of 2019. Data from the MOXIe and CATALYST trials are expected in the second half of 2019 and the first half of 2020, respectively.

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In Q2 2018, Reata Pharmaceuticals reported revenues of $7.6 million, which was a YoY (year-over-year) decline of 40.9%. It missed its consensus revenue and EPS estimates by $2.2 million and $1.10, respectively. Wall Street analysts expect Reata Pharmaceuticals to post $59.8 million in revenues in 2018, which is a YoY rise of 24.4%.

Reata Pharmaceuticals is also enrolling patients in PHOENIX, an open-label Phase 2 trial evaluating bardoxolone methyl in four rare CKDs: autosomal dominant polycystic kidney disease (or ADPKD), CKD due to Type 1 diabetes (or T1D CKD), IgA nephropathy, and focal segmental glomerulosclerosis (or FSGS). Together, the five targeted rare forms of CKD have a total US prevalence of ~700,000.

Analyst recommendations for Reata Pharmaceuticals

The overall analyst sentiment for Reata Pharmaceuticals on September 12 seems to have improved from the previous month. Of the seven analysts covering the stock in September, six have recommended a “strong buy,” and one has recommended a “buy.”

Wall Street analysts have projected a 12-month consensus target price for Reata Pharmaceuticals of $114.86, which would be an increase of 27.25% over its closing price on September 13.

In the next part of this series, we’ll look at the growth trends for G1 Therapeutics.

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