Reata Pharma (NASDAQ: RETA) shares jumped over 25% on February 28, after the clinical-stage biopharmaceutical company reported worse-than-expected fourth-quarter results. However, Reata revealed impressive progress on its efforts to advance omaveloxolone for the treatment of patients with Friedreich’s ataxia.
The company stated that it has received Fast Track Designation from the U.S. Food and Drug Administration (FDA) for omaveloxolone. Likewise, it has initiated rolling submission of New Drug Application (NDA) and is actively preparing for the commercial launch of the drug early next year.
The company reported an adjusted loss of $2.35 per share, which fell four cents short of the street’s estimated loss of $2.31. The company reported an adjusted loss of $1.90 per share for the prior-year period.
Total collaboration revenues of $934,000 lagged consensus estimates of $1.63 million and were much lower than the $3.2 million reported a year earlier.
Markedly, the company stated that its existing cash and cash equivalents will be sufficient to fund its operations through the end of 2024.
Update on Omaveloxolone Launch & Alport Syndrome Program
Concurrent with the earnings release, the company announced that it has initiated a rolling submission of New Drug Application (NDA) for omaveloxolone for the treatment of patients with Friedreich’s Ataxia.
Notably, the company is actively preparing for the commercial launch of the drug early next year. Further, it plans to work with the FDA to confirm its next steps related to its Alport syndrome program.
Reata’s CEO, Warren Huff, commented, “Our strong balance sheet has permitted us to continue the development of drugs for deadly diseases with few or no available therapies. We look forward to providing additional updates as we advance towards key milestones.”
The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 5 Buys and 3 Holds. The average Reata Pharmaceuticals stock forecast of $80.57 implies 146.1% upside potential to current levels.
Bloggers Weigh In
TipRanks data shows that financial blogger opinions are 100% Bullish on RETA stock, compared to a sector average of 68%.
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