Abbott Labs Pays $400M in Extended Development Deal

By FOXBusiness

Abbott Laboratories (NYSE:ABT) has paid $400 million to gain access to privately held Reata Pharmaceuticals’ drug technology that is focused on a broad-range of therapeutic areas, including pulmonary and central nervous system disorders.

The deal to develop Reata’s second-generation antioxidant inflammation modulators expands their $450 million agreement from September 2010 in which Abbott gained exclusive rights to commercialize Reata’s lead AIM compound outside the U.S.

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Under the terms of the latest deal, the companies will share costs and profits for all new indications, except rheumatoid arthritis and some other autoimmune disease, in which Abbott will take 70% of costs and profits.

Abbott and Reata expect to start the early-stage human trials with the first compound in 2012.