Biotech developing kidney disease treatment jumps after hedge fund recommendation at conference

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Adam Jeffery | CNBC

Bihua Chen, founder and portfolio manager at Cormorant Asset Management, said on Monday she likes kidney disease drug maker Reata Pharmaceuticals.

The kidney drug that Reata is developing called Bardoxolone has “striking efficacy,” the hedge fund manager said from the Sohn Conference in New York.

Shares of Reata Pharmaceutical jumped more than 5% after Chen revealed her bet on the drugmaker.

Chen pointed out there are concerns about the new drug that could lead to heart failure and weight loss, but she said based on her research on the drug trails, she’s not worried about the safety issue.

“I think its safety profile is real and sustainable,” she said.

Reata’s stock has surged more than 49% year to date.

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