ALEXANDRIA, Va., May 17 /PRNewswire/ -- Oxford Finance Corporation (Oxford), a subsidiary of Sumitomo Corporation, today announced that its ongoing strategy to offer value beyond its core product, senior secured debt, has provided substantial growth opportunities for its portfolio company, Reata Pharmaceuticals (Reata). Oxford provided a $15 million senior loan facility to Reata in 2007 and participated in a recent $32 million Series F equity round. Oxford also introduced Reata to another Sumitomo Corporation subsidiary, Summit Pharmaceuticals International (SPI), which identified licensing opportunities for Reata in Japan as part of Sumitomo's integrated service to Oxford's portfolio companies.
These strategic business relationships resulted in an agreement between Kyowa Hakko Kirin, a leading biopharmaceutical company in Japan, and Reata that provides Kyowa Hakko Kirin exclusive rights to develop and commercialize Reata's lead compound, bardoxolone methyl, in Japan and other selected Asian markets. Under the terms of the agreement, Reata is eligible to receive up to $272 million in upfront and milestone payments, as well as escalating double-digit royalties.
"From the beginning of our business relationship in 2007, Reata has taken full advantage of the breadth of services Oxford offers its clients," said J. Alden Philbrick, president and chief executive officer of Oxford Finance Corporation. "Access to Asian markets is a huge opportunity for Reata, and we congratulate them on their successful execution of their agreement."
"Our relationship with Oxford began with Reata's need for funds to support the growth of our business," said Warren Huff, chief executive officer and president of Reata Pharmaceuticals. "Beyond providing capital, Oxford brought additional value to our company by offering resources that led to a highly beneficial partnering opportunity in Japan."
About Oxford Finance Corporation
A subsidiary of Sumitomo Corporation, Oxford is a specialty finance firm providing senior secured loans to public and private life science companies worldwide. For 20 years, Oxford has delivered flexible financing solutions to its clients, enabling these companies to maximize their equity by leveraging their assets. In recent years, Oxford has originated over $1 billion in loans, with lines of credit ranging from $500 thousand to $30 million. Oxford is headquartered in Alexandria, Virginia, with additional offices in California and Massachusetts. For more information, visit www.oxfordfinance.com.
About Reata Pharmaceuticals, Inc.
Reata is the leader in discovering and developing novel anti-inflammatory drugs targeting Nrf2, which controls the body's production of antioxidant and detoxification enzymes and has been shown to protect against a broad range of diseases associated with inflammation and oxidative stress. Reata is developing a portfolio of AIMs for a variety of inflammation-related diseases, including renal/cardiovascular diseases, respiratory diseases (COPD), CNS diseases, cancer, and autoimmune diseases. The company's most advanced program is in pivotal trials for the treatment of CKD. For more information, visit www.reatapharma.com.
SOURCE Oxford Finance Corporation