The magnitude and timing of this deal has implications for companies operating in the rare disease space looking to partner their developmental assets and brings hope that the M&A wave for orphan drugs is building momentum. Reata’s primary asset, SKYCLARYS (omaveloxolone), is approved for the treatment of Friedreich’s Ataxia – a neurological condition that affects roughly 1:50,000 people (in the US). The drug is currently under regulatory review for the same indication in Europe. Reata’s other assets (Cemdomespib, RTA-415, RTA-417) are relatively early in their development. Whilst, addressable markets are not the only driver of asset value, they are an important part of the equation, along with shorter paths to market, access to commercial exclusivity periods and orphan drug pricing. Taken together, these factors make the rare disease space particularly attractive. We take this announcement as a positive read for other companies looking to partner developmental rare-disease assets…Neuren Pharmaceuticals (ASX:NEU; 4x phase 2 rare disease assets under development) and PYC Therapeutics (ASXYC: 3x rare disease programs currently disclosed).
Given the mcap of PYC has risen I will come down to 40X. comments from a biotech analyst…….
PYC Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held
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YC: 3x rare disease programs currently disclosed).
Given the mcap of PYC has risen I will come down to 40X.
(20min delay)