 "Dr Reddy's subsidiary inks pact with US-based Olema Pharmaceuticals")
Dr Reddy's Laboratories on Thursday said its subsidiary has inked a pact with US-based Olema Pharmaceuticals Inc to research, develop and commercialise novel small molecule inhibitors of an undisclosed oncology target.
Olema and Aurigene Discovery Technologies, a wholly-owned unit of Dr Reddy's Laboratories, have inked an exclusive global licence agreement in this regard.
Under the terms of the agreement, Olema will make an upfront licensing payment of USD 8 million for the rights to a pre-existing Aurigene programme.
Aurigene will also be eligible for up to USD 60 million in potential clinical development and regulatory milestones and up to USD 370 million in potential commercial milestones, as well as royalties ranging from the mid-single digits to the low double digits, based on annual net sales.
During the research term, Olema will contribute funding to Aurigene to facilitate ongoing discovery efforts, Dr Reddy's said in a regulatory filing.
Olema and Aurigene will jointly direct further preclinical work and, if successful, Olema will lead clinical development along with regulatory and commercial activities, it added.
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"This agreement with Olema further validates Aurigene's proven expertise in discovery and preclinical development of effective cancer therapeutics," Aurigene CEO Murali Ramachandra said.
The company looks forward to the continued development of an Aurigene programme, which will now be ably supported by the extensive development capability of Olema, he added.
"We believe this is a strong strategic opportunity to enhance our growing discovery portfolio," said Sean P Bohen, President and Chief Executive Officer of Olema Oncology.