SAN FRANCISCO (January 13, 2010) – Morrison & Foerster represented Japanese drug developer Kyowa Hakko Kirin (Tokyo Stock Exchange: 4151) in the negotiations for a collaboration, supply, and licensing agreement with Texas-based Reata Pharmaceuticals, Inc. that provides Kyowa Hakko Kirin with the exclusive rights to develop, market, and sell Reata’s lead compound, bardoxolone methyl, in Japan and other selected Asian markets.
Upon FDA clearance, bardoxolone will help treat chronic kidney disorder (CKD) and other related diseases. Under the terms of the agreement, Reata retains the rights to develop and commercialize bardoxolone in all other territories not licensed to Kyowa Hakko Kirin, and will receive $132 million in development milestones, including $35 million up front. Reata will also be entitled to receive up to $140 million in sales milestones, as well as royalties from Kyowa Hakko Kirin sales in licensed territories.
Morrison & Foerster partner Jonathan Dickstein negotiated the deal on behalf of Kyowa Hakko Kirin. Mr. Dickstein specializes in licensing, strategic collaborations and other intellectual property-related business transactions. He has represented Kyowa Hakko Kirin in several other negotiations, including a $315 million collaboration deal with pharmaceutical company Sanofi-Aventis Group to develop and commercialize inflammation medication.