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Reata's (RETA) Q1 Earnings Beat Estimates, Revenues Miss
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Reata Pharmaceuticals Inc. reported first-quarter 2021 loss of $1.86 per share, narrower than the Zacks Consensus Estimate of a loss of $2.18. However, the loss was wider than the year-ago loss of $1.47.
However, the above loss included stock-based compensation and a non-cash interest expense. Adjusted loss for the quarter was $1.16 per share, wider than 89 cents per share recorded in the year-ago period.
Total revenues, comprising collaboration revenues, were $0.9 million compared with $1.35 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $1.4 million.
Despite the mixed results, shares of Reata were up 2.5% on May 6, following the earnings release. However, the company’s shares have declined 24.5% so far this year compared with the industry’s decrease of 6.7%.
Operating Expenses & Cash Position
Research and development expenses decreased 26.8% year over year to $34.9 million.
General and administrative expenses were $20.7 million, down 0.4% from the year-ago period.
The company had cash and cash equivalents of $777.6 million as of Mar 31, 2021 compared with $818.2 million as of December end. The company expects its cash resources to fund operations through mid-2024.
Pipeline Update
Reata is developing its lead pipeline candidates — bardoxolone methyl (bardoxolone) and omaveloxolone — for rare forms of chronic kidney disease (“CKD”) and neurological diseases, respectively. Please note that Reata re-acquired development, manufacturing and commercialization rights related to omaveloxolone and bardoxolone from AbbVie (ABBV - Free Report) last year.
Last month, the company announced that the FDA has accepted its new drug application (“NDA”) seeking approval for bardoxolone as a potential treatment for patients with chronic kidney disease (“CKD”) caused by Alport syndrome. The NDA was filed based on positive data from the phase III CARDINAL study. A decision from the FDA is expected by Feb 25, 2022.
Meanwhile, Reata is developing bardoxolone for treating autosomal dominant polycystic kidney disease (“ADPKD”) in the phase III FALCON study. The company expects to complete enrollment by the end of this year. Moreover, a phase II study is evaluating the candidate in patients at risk of rapidly progressing CKD due to multiple etiologies. Top-line data from this mid-stage study is expected in the second half of 2021.
Please note that the company successfully completed the pivotal MOXIe study on its another pipeline candidate, omaveloxolone, as a potential treatment of Friedreich’s ataxia (“FA”) in 2019. But the FDA stated that data from a single pivotal study was not sufficient to support a new drug application and suggested a second pivotal study. However, the company convinced the regulatory authority for a baseline-controlled study instead of a pivotal study. In November 2020 the FDA proposed additional exploratory analyses for omaveloxolone as a potential treatment of Friedreich’s ataxia (“FA”), following completion of its internal review of a baseline-controlled study. The company has completed the additional exploratory analyses and will discuss the data from the analyses in a Type C meeting with the FDA scheduled later in the second quarter. Based on the outcome of the data, the company may initiate a pivotal study on omaveloxolone in the FA indication in the second half of 2021.
Reata Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Atea’s earnings per share estimates have increased from $3.79 to $8.34 for 2021 and from $16.76 to $17.25 for 2022 in the past 30 days.
BioNTech’s earnings per share estimates have moved north from $18.70 to $26.30 for 2021 and from $6.77 to $7.16 for 2022 in the past 30 days. The company delivered an earnings surprise of 68.18%, on average, in the last four quarters. The stock has risen 106.1% so far this year.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
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Reata's (RETA) Q1 Earnings Beat Estimates, Revenues Miss
Reata Pharmaceuticals Inc. reported first-quarter 2021 loss of $1.86 per share, narrower than the Zacks Consensus Estimate of a loss of $2.18. However, the loss was wider than the year-ago loss of $1.47.
However, the above loss included stock-based compensation and a non-cash interest expense. Adjusted loss for the quarter was $1.16 per share, wider than 89 cents per share recorded in the year-ago period.
Total revenues, comprising collaboration revenues, were $0.9 million compared with $1.35 million in the year-ago quarter. The top line missed the Zacks Consensus Estimate of $1.4 million.
Despite the mixed results, shares of Reata were up 2.5% on May 6, following the earnings release. However, the company’s shares have declined 24.5% so far this year compared with the industry’s decrease of 6.7%.
Operating Expenses & Cash Position
Research and development expenses decreased 26.8% year over year to $34.9 million.
General and administrative expenses were $20.7 million, down 0.4% from the year-ago period.
The company had cash and cash equivalents of $777.6 million as of Mar 31, 2021 compared with $818.2 million as of December end. The company expects its cash resources to fund operations through mid-2024.
Pipeline Update
Reata is developing its lead pipeline candidates — bardoxolone methyl (bardoxolone) and omaveloxolone — for rare forms of chronic kidney disease (“CKD”) and neurological diseases, respectively. Please note that Reata re-acquired development, manufacturing and commercialization rights related to omaveloxolone and bardoxolone from AbbVie (ABBV - Free Report) last year.
Last month, the company announced that the FDA has accepted its new drug application (“NDA”) seeking approval for bardoxolone as a potential treatment for patients with chronic kidney disease (“CKD”) caused by Alport syndrome. The NDA was filed based on positive data from the phase III CARDINAL study. A decision from the FDA is expected by Feb 25, 2022.
Meanwhile, Reata is developing bardoxolone for treating autosomal dominant polycystic kidney disease (“ADPKD”) in the phase III FALCON study. The company expects to complete enrollment by the end of this year. Moreover, a phase II study is evaluating the candidate in patients at risk of rapidly progressing CKD due to multiple etiologies. Top-line data from this mid-stage study is expected in the second half of 2021.
Please note that the company successfully completed the pivotal MOXIe study on its another pipeline candidate, omaveloxolone, as a potential treatment of Friedreich’s ataxia (“FA”) in 2019. But the FDA stated that data from a single pivotal study was not sufficient to support a new drug application and suggested a second pivotal study. However, the company convinced the regulatory authority for a baseline-controlled study instead of a pivotal study. In November 2020 the FDA proposed additional exploratory analyses for omaveloxolone as a potential treatment of Friedreich’s ataxia (“FA”), following completion of its internal review of a baseline-controlled study. The company has completed the additional exploratory analyses and will discuss the data from the analyses in a Type C meeting with the FDA scheduled later in the second quarter. Based on the outcome of the data, the company may initiate a pivotal study on omaveloxolone in the FA indication in the second half of 2021.
Reata Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Reata Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Reata Pharmaceuticals, Inc. Quote
Zacks Rank & Stocks to Consider
Reata currently carries a Zacks Rank #4 (Sell).
A couple of better-ranked stocks from the biotech sector include Atea Pharmaceuticals (AVIR - Free Report) and BioNTech SE (BNTX - Free Report) . While BioNTech sports a Zacks Rank #1 (Strong Buy), Atea carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Atea’s earnings per share estimates have increased from $3.79 to $8.34 for 2021 and from $16.76 to $17.25 for 2022 in the past 30 days.
BioNTech’s earnings per share estimates have moved north from $18.70 to $26.30 for 2021 and from $6.77 to $7.16 for 2022 in the past 30 days. The company delivered an earnings surprise of 68.18%, on average, in the last four quarters. The stock has risen 106.1% so far this year.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>