Omaveloxolone is a small molecule commercialized by Reata Pharmaceuticals, with a leading Pre-Registration program in Friedreich Ataxia. According to Globaldata, it is involved in 14 clinical trials, of which 12 were completed, 1 is ongoing, and 1 is planned. GlobalData uses proprietary data and analytics to provide a complete picture of Omaveloxoloneā€™s valuation in its risk-adjusted NPV model (rNPV). Buy the model here.

The revenue for Omaveloxolone is expected to reach an annual total of $226 mn by 2032 in the US based off GlobalDataā€™s Expiry Model. The drugā€™s revenue forecasts along with estimated costs are used to measure the value of an investment opportunity in that drug, otherwise known as net present value (NPV). Applying the drugā€™s phase transition success rate to remaining R&D costs and likelihood of approval (LoA) to sales related costs provides a risk-adjusted NPV model (rNPV). The rNPV model is a more conservative valuation measure that accounts for the risk of a drug in clinical development failing to progress.

Omaveloxolone Overview

Omaveloxolone (RTA-408) is under development for the treatment of Friedreich's ataxia. The drug candidate is administered topically in the form of the lotion, orally in the form of capsule and by ophthalmic in the form of suspension. It is a member of the synthetic oleanane triterpenoid class of compounds. The drug candidate acts by targeting the mutated kelch like ECH associated protein 1 (KEAP1). The drug candidate was also under development for the treatment of corneal endothelial cell loss, radiation dermatitis, ocular inflammation and pain following ocular surgery.

It is also under development for progressive supranuclear palsy, amyotrophic lateral sclerosis, Parkinson’s disease, frontotemporal dementia, Huntington disease, Alzheimer’s disease, epilepsy, non-small cell lung cancer, mitochondrial myopathy and metastatic melanoma

Reata Pharmaceuticals Overview

Reata Pharmaceuticals (Reata) is a clinical-stage biopharmaceutical company. It develops innovative medicines for the treatment of serious and life-threatening diseases. The company’s clinical candidates include bardoxolone methyl and omaveloxolone, which target Nrf2, a transcription factor, for restoring mitochondrial function, reducing oxidative stress, and resolving inflammation. Its products also include HSP90 modulators, RTA 901, RORĪ³t inhibitors, and RTA 1701. Reata is evaluating bardoxolone methyl in connective tissue disease-associated pulmonary arterial hypertension (CTD-PAH), alport syndrome and other kidney diseases; and omaveloxolone in Friedreichā€™s ataxia. The company works in partnership with academics, biotechnology, and pharmaceutical companies to develop technologies. It has operations in the US, the UK, Ireland, Australia and Switzerland. Reata is headquartered in Plano, Texas, the US.

The company reported revenues of (US Dollars) US$11.5 million for the fiscal year ended December 2021 (FY2021), an increase of 27.4% over FY2020. The operating loss of the company was US$244.7 million in FY2021, compared to an operating loss of US$236.2 million in FY2020. The net loss of the company was US$297.4 million in FY2021, compared to a net loss of US$247.8 million in FY2020. The company reported revenues of US$0.5 million for the third quarter ended September 2022, a decrease of 29.1% over the previous quarter.

For a complete picture of Omaveloxoloneā€™s valuation, buy the drugā€™s risk-adjusted NPV model (rNPV) here.

GlobalData

GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

To create this model, GlobalData takes into account factors including patent law, known and projected regulatory approval processes, cash flows, drug margins and company expenses. Combining these data points with GlobalDataā€™s world class analysis creates high value models that companies can use to help in evaluation processes for each drug or company.

The rNPV method integrates the probability of a drug reaching a clinical stage into the cash flow at that time, which provides a more accurate valuation, as it considers the probability that the drug never makes it through the clinical pathway to commercialization. GlobalDataā€™s rNPV model uses proprietary likelihood of approval (LoA) and phase transition success rate (PTSR) data for the indication in the highest development stage, which can be found on GlobalDataā€™s Pharmaceutical Intelligence Center.