Abbott and Reata to collaborate on inflammation treatments

Abbott and Reata Pharmaceuticals have entered into a new collaboration pertaining to the development of new oral antioxidant inflammation modulator (AIM) treatments.

Under the terms of the new arrangement, the companies will work together to develop and commercialise Reata's portfolio of second-generation AIMs, which includes therapies in areas such as pulmonary disease, central nervous system disorders and immunology.

Abbott will pay a one-off licence fee of $400 million (257.96 million pounds) and will equally share costs and profits on all treatments other than those concerning rheumatoid arthritis and select other autoimmune diseases, in which case Abbott will be responsible for 70 percent of expenses and revenues.

This comes in addition to a collaboration agreed between the companies on the AIM compound bardoxolone methyl last year, with human trials of the first compound from the new partnership expected in 2012.

Dr John Leonard, senior vice-president for pharmaceutical research and development at Abbott, said: "This partnership allows Abbott to enhance its promising research pipeline across multiple therapeutic areas."

Last month, the company expanded its partnership with GlaxoSmithKline to include the development of a diagnostic test for a new cancer therapy.