What the Abbott deal means for Cormedix (AMEX: CRMD) ?
Posted by Mike Sweeney on Wed, Sep 29, 2010 @ 11:56
Abbott Laboratories recently announced it will pay $450 million for rights to Reata Pharmaceuticals' experimental kidney disease drug outside the United States and for a minority stake in the privately held company.
The two companies entered into an agreement to develop and commercialize bardoxolone methyl, which is currently in late Phase 2 clinical trials for the treatment of chronic kidney disease. The drug is expected to enter late-stage Phase 3 development either late this year or early 2011, an Abbott spokeswoman said.
This article at BioWorld talks about how a financing this summer for Reata actually sped up the partnering process:
"When Reata Pharmaceuticals Inc. closed a $78 million Series G financing in July to push its chronic kidney disease drug bardoxolone to a new drug submission, CEO Warren Huff acknowledged that the Irving, Texas-based firm was looking for commercialization help outside the U.S. "That financing actually gave us a good position to move into [partnering] negotiations," he told BioWorld Today."
Marie Daghlian at Seeking Alpha covers some other tranactions in the market:
"Medical device company Asthmatx’s agreed to be acquired by Boston Scientific (BSX) in a structured deal worth as much as $443.5 million. Boston Scientific is paying $193.5 million cash upfront and up to $250 million contingent upon achievement of specified revenue-based milestones through 2019.
Other biotechs garnered their cash from VCs. Immatics Biotechnologies raised $71 million in a series C financing round from Dievini Hopp Biotech, Wellington Partners and other existing shareholders, and new investors MIG-advised funds and AT Impf. The money will allow the company to start a late-stage trial of its lead therapeutic cancer vaccine candidate in renal cell carcinoma, and continue development of its pipeline of therapeutic vaccines. Immatics presented mid-stage results at the ASCO meeting in June."
Investors should keep their eye on Cormedix over the next two quarters.