Description of Business

9 Months Ended

Sep. 30, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business

1. Description of Business

Reata Pharmaceuticals, Inc. (the Company) is a clinical stage biopharmaceutical company focused on identifying, developing, and commercializing therapeutics to address serious and life-threatening diseases with few or no approved therapies by targeting molecular pathways that regulate cellular metabolism and inflammation.  The Company is currently conducting three registrational trials with its lead product candidates, bardoxolone methyl and omaveloxolone, which activate the transcription factor Nrf2 to restore mitochondrial function, reduce oxidative stress, and resolve inflammation.  The Company’s lead registrational programs are evaluating its product candidates for the treatment of a rare form of chronic kidney disease (CKD) caused by Alport syndrome, a rare form of degenerative neuromuscular disease called Friedreich’s ataxia (FA), and a rare and severe form of pulmonary arterial hypertension associated with connective tissue disease (CTD-PAH).  The Company has received orphan drug designation from the FDA and the European Medicines Agency (EMA) for bardoxolone methyl for the treatment of Alport syndrome and for omaveloxolone for the treatment of FA and from the FDA for bardoxolone methyl for the treatment of PAH.

In addition to its three registrational programs, the Company is developing plans to advance bardoxolone methyl into a Phase 3 trial in 2019 for the treatment of autosomal dominant polycystic kidney disease (ADPKD) and to also pursue IgA nephropathy (IgAN) and type 1 diabetic CKD (T1D CKD) as commercial indications.  The Company is also currently conducting additional clinical and preclinical programs in serious and life-threatening diseases that may provide additional opportunities for its drug candidates and plans to evaluate data from the remaining earlier stage programs to determine which indications to advance into later stage trials.

The Company’s consolidated financial statements include the accounts of all majority-owned subsidiaries.  Accordingly, the Company’s share of net earnings and losses from these subsidiaries is included in the consolidated statements of operations.  Intercompany profits, transactions, and balances have been eliminated in consolidation.

On July 27, 2018, the Company closed a follow-on underwritten public offering of 3,450,000 shares of its Class A common stock for gross proceeds of $248,400,000.  The Company received net proceeds from the offering of $232,846,000, after deducting underwriting discounts and commissions and offering expenses.