Long Position on RETA @ $83.00 on 3/14/2023 (Momentum)

Reata Pharmaceuticals, Inc. (RETA) identifies, develops, and commercializes novel therapeutics for patients with serious or life-threatening diseases. 

The company is developing Phase 3 clinical trial programs, including bardoxolone methyl (bardoxolone) for the treatment of patients with chronic kidney disease (CKD) caused by Alport syndrome, as well as for a form of pulmonary arterial hypertension associated with connective tissue disease; omaveloxolone to treat Friedreich's ataxia; and conduct various form of CKD, such as, type 1 and type 2 diabetic CKD, type 1 and type 2 diabetic CKD, hypertensive CKD, focal segmental glomerulosclerosis, and others.

It is also developing RTA 901 for neurological diseases; and bardoxolone for the treatment of autosomal dominant polycystic kidney disease. In addition, the company has a strategic collaboration agreement with Kyowa Kirin Co., Ltd. to develop and commercialize bardoxolone for renal, cardiovascular, diabetes, and various other related metabolic indications.

Shares have formed a bullish "flag" after he FDA approved Reata's Skyclarys (omaveloxolone) for Friedreich's ataxia in adults and adolescents aged 16 and older. Friedreich's ataxia is a rare genetic, progressive and neurodegenerative movement disorder that affects approximately 5,000 people in the United States. This disease, usually diagnosed during adolescence, causes progressive loss of coordination, muscle weakness and fatigue, eventually resulting in loss of mobility and death.  Reata also has an important early-stage candidate called cemdomespib (RTA 901), the lead product candidate fromR the company's Hsp90 modulator program, in neurological indications. Higher share prices are expected.

Entry Point: $83.00

Stop Loss: $79.00

Trading Range: $18.47 to $95.00

Target Price: $91.30

Position closed on 3/29/2023 at price of $42.20 with a -49.16% loss in 15 days.

Back to Portfolio