Reata Completes Financing and Expands Team to Capture Opportunity Created by Encouraging Clinical Data in Chronic Kidney Disease

Reata Pharmaceuticals, Inc. announced today that the company has made significant progress in advancing its lead project, bardoxolone methyl, for the treatment of chronic kidney disease (CKD). Based on encouraging results from a recently completed Phase 2a trial, the company has initiated a Phase 2b trial of this agent in patients with advanced chronic kidney disease (CKD) and Type 2 diabetes. To finance this trial, the company closed $32.0 million in the first tranche of a private financing round. Additionally, the company recently added Eric Grossman, a Nephrologist with significant drug development experience, to its team as the Vice President of Clinical Development and Medical Affairs.

“The initiation of our Phase 2b trial of bardoxolone methyl in patients with CKD represents a significant milestone for Reata. If the results of this trial confirm the consistency, magnitude, and duration of effects on kidney function seen in previous studies, this drug will represent a significant breakthrough for patients facing a progressive decline in their kidney function,” commented Warren Huff, CEO of Reata.

Bardoxolone in Chronic Kidney Disease

Bardoxolone is the lead agent in Reata’s pipeline of Antioxidant Inflammation Modulators (AIMs), novel oral anti-inflammatory agents that activate Nrf2, the transcription factor that controls production of antioxidant and detoxification enzymes. In clinical studies, bardoxolone has been shown to meaningfully improve patients’ kidney function in a high percentage of patients already receiving best available therapy, and to be well tolerated with a good safety profile. Data from two Phase 1 clinical trials will be presented at the National Kidney Foundation Spring Meeting in Nashville, TN on March 26-29, 2009 and data from a Phase 2a trial in patients with chronic kidney disease and diabetes will be presented in oral presentations at the American Diabetes Association in New Orleans, LA on June 6-8, 2009.

The Phase 2b study is being conducted in 200 patients with type 2 diabetes and advanced CKD (with glomerular filtration rate, or GFR, between 20 and 45), which is the same patient population as the recently completed study. This study will be conducted at over 40 sites in the United States and Europe. The primary endpoint will be the change in GFR from baseline. Additional measures of renal function, glycemic control and cardiovascular risk will also be assessed. Improvements in each of these parameters were seen in previous studies.

About Chronic Kidney Disease

CKD is a progressive loss of kidney function over a period of months or years, which can be caused by a number of conditions, including diabetes and high blood pressure. As kidney disease gets worse, waste products can build to high levels in the blood and patients may develop complications like high blood pressure, anemia (low blood count), weak bones, poor nutritional health and nerve damage. CKD also increases the risk of having heart and blood vessel disease. As CKD progresses, it may eventually lead to kidney failure, requiring dialysis or a kidney transplant.

The prevalence of CKD has increased by 16 percent over the last 10 years as a result of the increasing incidence of diabetes, hypertension, obesity and an aging population. A recent report by the Centers for Disease Control determined that more than one in six adults (or 26 million Americans) have CKD. More than 400,000 patients are currently on dialysis or have received kidney transplants. About 67,000 people die each year because of kidney failure. CKD is more prevalent among individuals older than 60 years of age and among Hispanic, African American, Asian or Pacific Islander and Native American populations.

Team Expansion

Eric Grossman, M.D. joined the Reata team as the Vice President of Clinical Development and Medical Affairs in February, 2009. After receiving his training at the Pritzer School of Medicine at the University of Chicago, Tufts-new England Medical Center, and the Brigham and Women’s Hospital, Dr. Grossman spent a number of years as a practicing Nephrologist before joining Pfizer’s clinical development organization. Following his tenure at Pfizer, Dr. Grossman served as the Medical Director at the New York Organ Donor Network and as Vice President for Clinical Development and Medical Affairs at Keryx Pharmaceuticals. At Reata, Dr. Grossman has responsibility for the company’s clinical programs, including the lead program in CKD.

About Reata

Reata Pharmaceuticals, Inc. is a biopharmaceutical company focused on translating innovative science into breakthrough medicines for intractable diseases. 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. The company’s most advanced program is in late-stage clinical development for the treatment of CKD, a progressive condition affecting more than 26 million Americans. For more information, visit www.reatapharma.com.