Announcement • Sep 28
Reata Pharmaceuticals, Inc.(NasdaqGM:RETA) dropped from NASDAQ Composite Index Reata Pharmaceuticals, Inc. has been removed from Nasdaq Composite Index. Recent Insider Transactions • Sep 19
Insider recently sold US$546k worth of stock On the 14th of September, Andrea Loewen-Rodriguez sold around 3k shares on-market at roughly US$172 per share. This transaction amounted to 10% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$15m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Sep 17
Insider notifies of intention to sell stock Andrea Loewen-Rodriguez intends to sell 3k shares in the next 90 days after lodging an Intent To Sell Form on the 14th of September. If the sale is conducted around the recent share price of US$172, it would amount to US$546k. Since March 2023, Andrea's direct individual holding has decreased from 5.49k shares to 0. Company insiders have collectively sold US$61m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Aug 18
Executive VP & Chief Innovation Officer recently sold US$463k worth of stock On the 16th of August, Colin Meyer sold around 3k shares on-market at roughly US$169 per share. This transaction amounted to 3.2% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth US$6.0m. Insiders have been net sellers, collectively disposing of US$14m more than they bought in the last 12 months. Announcement • Aug 17
Sanofi Reportedly Second Bidder for Reata Biogen Inc. (NasdaqGS:BIIB) narrowly beat out Sanofi (ENXTPA:SAN) to clinch its $7.3 billion acquisition of Reata Pharmaceuticals, Inc. (NasdaqGM:RETA), according to people familiar with the matter. An entity identified as “Party A” in a regulatory filing Friday lost the competition for Reata by 50 cents per share after several rounds of bidding. Party A was Sanofi, the people said, asking to not be identified because the matter isn’t public. Representatives for Reata, Sanofi and Biogen declined to comment. Major Estimate Revision • Aug 17
Consensus revenue estimates increase by 60% The consensus outlook for revenues in fiscal year 2023 has improved. 2023 revenue forecast increased from US$55.8m to US$89.3m. Forecast losses expected to reduce from -US$10.43 to -US$2.51 per share. Pharmaceuticals industry in the US expected to see average net income growth of 4.2% next year. Consensus price target of US$172 unchanged from last update. Share price was steady at US$169 over the past week. Major Estimate Revision • Aug 15
Consensus revenue estimates increase by 67% The consensus outlook for revenues in fiscal year 2023 has improved. 2023 revenue forecast increased from US$55.8m to US$93.2m. Forecast losses expected to reduce from -US$10.43 to -US$2.28 per share. Pharmaceuticals industry in the US expected to see average net income growth of 5.9% next year. Consensus price target of US$172 unchanged from last update. Share price was steady at US$169 over the past week. Reported Earnings • Aug 08
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: US$5.12 (up from US$2.02 loss in 2Q 2022). Revenue: US$22.7m (up US$22.0m from 2Q 2022). Net income: US$193.0m (up US$266.6m from 2Q 2022). Revenue exceeded analyst estimates significantly. Earnings per share (EPS) also surpassed analyst estimates. Revenue is forecast to grow 48% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Pharmaceuticals industry in the US. Over the last 3 years on average, earnings per share has increased by 13% per year whereas the company’s share price has increased by 17% per year. Recent Insider Transactions Derivative • Jul 31
COO, CFO & President notifies of intention to sell stock Manmeet Soni intends to sell 38k shares in the next 90 days after lodging an Intent To Sell Form on the 28th of July. If the sale is conducted around the recent share price of US$109, it would amount to US$4.1m. Since March 2023, Manmeet's direct individual holding has decreased from 28.76k shares to 8.05k. Company insiders have collectively sold US$40m more than they bought, via options and on-market transactions in the last 12 months. New Risk • Jul 30
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of American stocks, typically moving 18% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (18% average weekly change). Negative equity (-US$131m). Minor Risks Shareholders have been diluted in the past year (3.0% increase in shares outstanding). Significant insider selling over the past 3 months (US$9.4m sold). Revenue is less than US$5m (US$1.5m revenue). Announcement • Jul 29
Biogen Inc. (NasdaqGS:BIIB) entered into a definitive agreement to acquire Reata Pharmaceuticals, Inc. (NasdaqGM:RETA) from shareholders for approximately $7 billion. Biogen Inc. (NasdaqGS:BIIB) entered into a definitive agreement to acquire Reata Pharmaceuticals, Inc. (NasdaqGM:RETA) from shareholders for approximately $7 billion on July 28, 2023. Biogen has agreed to acquire Reata for $172.50 per share in cash. The acquisition of Reata is expected to be slightly dilutive to Biogen’s Non-GAAP diluted Earnings Per Share (EPS) in 2023, roughly neutral in 2024, and significantly accretive beginning in 2025, inclusive of associated transaction costs. Biogen expects to finance the acquisition with cash on hand, supplemented by the issuance of term debt. The transaction is subject to customary closing conditions, including approval by Reata stockholders and the receipt of necessary regulatory approvals. Biogen has entered into voting and support agreements with certain stockholders of Reata representing approximately 36% of the voting power of Reata’s common stock. The transaction, which was approved by the boards of directors of both companies, is currently anticipated to close in the fourth quarter of 2023. Biogen expects this acquisition to be accounted for as a business combination. Lazard acted as financial advisor to Biogen in this transaction and Cravath, Swaine & Moore acted as its legal advisor. Goldman Sachs acted as financial advisor to Reata and Vinson & Elkins acted as its legal advisor. Price Target Changed • Jul 28
Price target increased by 8.5% to US$125 Up from US$115, the current price target is an average from 10 analysts. New target price is 25% below last closing price of US$167. Stock is up 445% over the past year. The company is forecast to post a net loss per share of US$10.49 next year compared to a net loss per share of US$8.54 last year. Announcement • Jun 28
Reata Pharmaceuticals, Inc. Announces Approval of Prior Approval Supplement for SKYCLARYS®? (Omaveloxolone) and Commercial Availability of SKYCLARYS for Patients with Friedreich's Ataxia Reata Pharmaceuticals, Inc. announced that the United States Food and Drug Administration (FDA) has approved the Prior Approval Supplement (PAS) to update the drug substance specification for SKYCLARYS®? (omaveloxolone), the first and only FDA approved drug for the treatment of Friedreich's ataxia in adults and adolescents aged 16 years and older. With the approval of the PAS, SKYCLARYS is now available to patients with Friedreich's ataxIA in the United States. SKYCLARYS®®? (omaveloxalone) is an oral, once-daily medication indicated for the treatment of Friedrech's ataxia in adults, adolescents aged 16 years and older in the United States. The Company's Marketing Authorization Application for omaveloxolone is under review in Europe by the European Medicines Agency (EMA). The European Commission has granted Orphan Drug designation in Europe to omaveloxolone for the treatment of FriedreICH's ataxia. Hormonal Contrace contraceptive: Counsel females to use an alternative contraceptive method (e.g., non-hormonal intrarauterine system) or additional non-hormonal contraceptive (e.g., condoms) during concomitant use and for 28 days after discontinuation of SKYCLARYS. This is not a complete list of potential drug interactions. Specific Population: Due to the uncertainty of any potential adverse effects on the breastfed infant, women are advised not to breastfeed during treatment with SKYCLARYS. Announcement • Jun 25
Reata Pharmaceuticals, Inc.(NasdaqGM:RETA) dropped from Russell 2000 Growth Index Reata Pharmaceuticals, Inc.(NasdaqGM:RETA) dropped from Russell 2000 Growth Index Recent Insider Transactions • Jun 18
COO, CFO & President recently sold US$6.0m worth of stock On the 13th of June, Manmeet Soni sold around 58k shares on-market at roughly US$104 per share. This transaction amounted to 94% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Manmeet has been a net seller over the last 12 months, reducing personal holdings by US$8.2m. Recent Insider Transactions Derivative • Jun 16
COO, CFO & President notifies of intention to sell stock Manmeet Soni intends to sell 5k shares in the next 90 days after lodging an Intent To Sell Form on the 12th of June. If the sale is conducted around the recent share price of US$99.62, it would amount to US$469k. Since March 2023, Manmeet's direct individual holding has increased from 28.76k shares to 61.22k. Company insiders have collectively sold US$32m more than they bought, via options and on-market transactions in the last 12 months. Announcement • Jun 14
Reata Pharmaceuticals Appoints Rajiv Patni as Executive Vice President, Chief Research & Development Officer Reata Pharmaceuticals, Inc. announced the appointment of Rajiv Patni, M.D., as Executive Vice President, and Chief Research & Development Officer. Dr. Patni will report to Warren Huff, Chief Executive Officer, and will be responsible for overseeing the Company’s research and development functions. Dr. Patni brings over 23 years of global product development experience, including 18 clinical programs in the cardiology, diabetology, hepatology, neurology, and benign hematology therapeutic areas. Prior to joining Reata, Dr. Patni was Chief Medical Officer (CMO) at Global Blood Therapeutics from 2020 to 2023. Prior to that time, he was CMO at Portola Pharmaceuticals and Adamas Pharmaceuticals. Early in his career, Dr. Patni worked at Pfizer, Roche, and Actelion, where he held positions of increasing responsibility. His proven track record in fostering successful team efforts at these different companies contributed to the approval of 10 medicines from the U.S. Food and Drug Administration, European Medicines Agency, and other regulatory agencies. Dr. Patni received his MD degree from the Mount Sinai School of Medicine in New York City, as part of an accelerated BS/MD program. He completed an internal medicine residency and adult cardiology fellowship at the Albert Einstein College of Medicine, also in New York City, where he continued as an attending physician before joining industry. Recent Insider Transactions • May 18
Insider recently sold US$616k worth of stock On the 16th of May, Andrea Loewen-Rodriguez sold around 7k shares on-market at roughly US$86.01 per share. This transaction amounted to 100% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth US$808k. Insiders have been net sellers, collectively disposing of US$4.6m more than they bought in the last 12 months. Major Estimate Revision • May 17
Consensus revenue estimates increase by 27%, EPS downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from US$42.5m to US$53.9m. EPS estimate fell from -US$8.95 to -US$10.28 per share. Pharmaceuticals industry in the US expected to see average net income decline 7.8% next year. Consensus price target broadly unchanged at US$113. Share price fell 19% to US$85.02 over the past week. Breakeven Date Change • May 12
Forecast to breakeven in 2025 The 9 analysts covering Reata Pharmaceuticals expect the company to break even for the first time. New consensus forecast suggests losses will reduce by 26% per year to 2024. The company is expected to make a profit of US$190.1m in 2025. Average annual earnings growth of 69% is required to achieve expected profit on schedule. Reported Earnings • May 10
First quarter 2023 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2023 results: US$3.14 loss per share (further deteriorated from US$2.03 loss in 1Q 2022). Net loss: US$116.1m (loss widened 57% from 1Q 2022). Revenue exceeded analyst estimates by 23%. Earnings per share (EPS) missed analyst estimates by 30%. Revenue is forecast to grow 60% p.a. on average during the next 3 years, compared to a 6.8% growth forecast for the Pharmaceuticals industry in the US. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Recent Insider Transactions • Mar 20
Executive VP & Chief Commercial Officer recently sold US$808k worth of stock On the 13th of March, Dawn Bir sold around 9k shares on-market at roughly US$86.77 per share. This transaction amounted to 22% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$3.9m more than they bought in the last 12 months. Recent Insider Transactions • Mar 16
Executive VP & Chief Commercial Officer recently sold US$630k worth of stock On the 7th of March, Dawn Bir sold around 7k shares on-market at roughly US$90.03 per share. This transaction amounted to 92% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$3.1m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Mar 09
Executive VP & Chief Innovation Officer exercised options and sold US$7.7m worth of stock On the 2nd of March, Colin Meyer exercised options to acquire 89k shares at no cost and sold these for an average price of US$86.69 per share. This trade did not impact their existing holding. Since June 2022, Colin's direct individual holding has increased from 93.49k shares to 101.33k. Company insiders have collectively sold US$17m more than they bought, via options and on-market transactions in the last 12 months. Breakeven Date Change • Mar 03
Forecast to breakeven in 2025 The 9 analysts covering Reata Pharmaceuticals expect the company to break even for the first time. New consensus forecast suggests losses will reduce by 26% per year to 2024. The company is expected to make a profit of US$104.6m in 2025. Average annual earnings growth of 58% is required to achieve expected profit on schedule. Major Estimate Revision • Mar 03
Consensus revenue estimates increase by 18%, EPS downgraded The consensus outlook for fiscal year 2023 has been updated. 2023 revenue forecast increased from US$26.1m to US$30.8m. EPS estimate fell from -US$8.43 to -US$9.00 per share. Pharmaceuticals industry in the US expected to see average net income growth of 5.6% next year. Consensus price target up from US$62.40 to US$111. Share price rose 95% to US$86.81 over the past week. Price Target Changed • Mar 01
Price target increased by 75% to US$104 Up from US$59.50, the current price target is an average from 10 analysts. New target price is 12% above last closing price of US$93.17. Stock is up 184% over the past year. The company is forecast to post a net loss per share of US$8.65 next year compared to a net loss per share of US$8.54 last year. Reported Earnings • Feb 26
Full year 2022 earnings: EPS and revenues miss analyst expectations Full year 2022 results: US$8.54 loss per share (further deteriorated from US$8.19 loss in FY 2021). Net loss: US$311.9m (loss widened 4.9% from FY 2021). Products in clinical trials Phase I: 1 Phase III: 3 Post-clinical trial products Pre-registration: 1 Revenue missed analyst estimates by 15%. Earnings per share (EPS) also missed analyst estimates by 1.3%. Revenue is forecast to grow 52% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Pharmaceuticals industry in the US. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 39% per year, which means it is significantly lagging earnings. Price Target Changed • Nov 16
Price target increased to US$59.50 Up from US$54.20, the current price target is an average from 10 analysts. New target price is 43% above last closing price of US$41.67. Stock is down 56% over the past year. The company is forecast to post a net loss per share of US$8.43 next year compared to a net loss per share of US$8.19 last year. Major Estimate Revision • Nov 16
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from US$3.01m to US$2.59m. EPS estimate unchanged at -US$8.43 per share. Pharmaceuticals industry in the US expected to see average net income growth of 4.6% next year. Consensus price target up from US$54.20 to US$59.50. Share price rose 3.4% to US$41.67 over the past week. Price Target Changed • Nov 11
Price target increased to US$59.50 Up from US$54.20, the current price target is an average from 10 analysts. New target price is 55% above last closing price of US$38.27. Stock is down 63% over the past year. The company is forecast to post a net loss per share of US$8.43 next year compared to a net loss per share of US$8.19 last year. Reported Earnings • Nov 10
Third quarter 2022 earnings: EPS in line with expectations, revenues disappoint Third quarter 2022 results: US$2.16 loss per share (further deteriorated from US$1.97 loss in 3Q 2021). Net loss: US$79.0m (loss widened 10.0% from 3Q 2021). Revenue missed analyst estimates by 26%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 82% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Pharmaceuticals industry in the US. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 41% per year, which means it is significantly lagging earnings. Major Estimate Revision • Aug 15
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from US$4.26m to US$3.18m. EPS estimate unchanged at -US$8.43 per share. Pharmaceuticals industry in the US expected to see average net income decline 3.6% next year. Consensus price target down from US$57.11 to US$50.67. Share price fell 14% to US$20.61 over the past week. Price Target Changed • Aug 10
Price target decreased to US$50.67 Down from US$57.11, the current price target is an average from 5 analysts. New target price is 135% above last closing price of US$21.56. Stock is down 79% over the past year. The company is forecast to post a net loss per share of US$8.45 next year compared to a net loss per share of US$8.19 last year. Reported Earnings • Aug 08
Second quarter 2022 earnings: EPS in line with expectations, revenues disappoint Second quarter 2022 results: US$2.02 loss per share (down from US$2.00 loss in 2Q 2021). Revenue: US$762.0k (down 66% from 2Q 2021). Net loss: US$73.6m (loss widened 1.2% from 2Q 2021). Revenue missed analyst estimates by 48%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the next year, revenue is forecast to grow 199%, compared to a 14% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has fallen by 33% per year, which means it is performing significantly worse than earnings. Major Estimate Revision • May 17
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from US$5.27m to US$4.74m. EPS estimate increased from -US$8.95 to -US$8.44 per share. Pharmaceuticals industry in the US expected to see average net income growth of 12% next year. Consensus price target broadly unchanged at US$59.00. Share price rose 14% to US$27.84 over the past week. Reported Earnings • May 10
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: US$2.03 loss per share (down from US$1.86 loss in 1Q 2021). Revenue: US$914.0k (down 3.2% from 1Q 2021). Net loss: US$73.8m (loss widened 9.5% from 1Q 2021). Revenue missed analyst estimates by 41%. Earnings per share (EPS) exceeded analyst estimates by 6.1%. Over the next year, revenue is forecast to grow 54%, compared to a 6.9% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has fallen by 36% per year, which means it is performing significantly worse than earnings. Price Target Changed • Apr 27
Price target increased to US$59.67 Up from US$53.33, the current price target is an average from 8 analysts. New target price is 130% above last closing price of US$25.91. Stock is down 75% over the past year. The company is forecast to post a net loss per share of US$8.95 next year compared to a net loss per share of US$8.19 last year. Price Target Changed • Mar 24
Price target increased to US$62.75 Up from US$53.67, the current price target is an average from 7 analysts. New target price is 69% above last closing price of US$37.09. Stock is down 63% over the past year. The company is forecast to post a net loss per share of US$8.91 next year compared to a net loss per share of US$8.19 last year. Reported Earnings • Mar 02
Full year 2021 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2021 results: US$8.19 loss per share (down from US$7.35 loss in FY 2020). Revenue: US$11.5m (up 27% from FY 2020). Net loss: US$297.4m (loss widened 20% from FY 2020). Revenue missed analyst estimates by 6.8%. Earnings per share (EPS) exceeded analyst estimates by 1.1%. Over the next year, revenue is expected to shrink by 48% compared to a 21% growth forecast for the pharmaceuticals industry in the US. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has fallen by 31% per year, which means it is performing significantly worse than earnings. Breakeven Date Change • Mar 01
No longer forecast to breakeven The 7 analysts covering Reata Pharmaceuticals no longer expect the company to break even during the foreseeable future. The company was expected to make a profit of US$65.4m in 2024. New consensus forecast suggests the company will make a loss of US$378.9m in 2024.