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Dr. Reddy's biotech arm inks exclusive agreement with Olema Oncology

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Last Updated : Jun 10 2022 | 9:04 AM IST

Dr. Reddy's Laboratories said that Olema Pharmaceuticals Inc. and Aurigene Discovery Technologies have entered into an exclusive global license agreement to discover and develop novel cancer therapies.

The two companies have joined hand to research, develop and commercialize novel small molecule inhibitors of an undisclosed oncology target.

Aurigene Discovery Technologies is a clinical stage biotech company committed to bringing novel therapeutics for the treatment of cancer and inflammation and a wholly owned subsidiary of Dr. Reddy's Laboratories.

San Francisco-based Olema Oncology is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of targeted therapies for women's cancers.

Under the terms of the agreement, Olema will make an upfront licensing payment of $8 million for rights to a pre-existing Aurigene program. Aurigene will be eligible for up to $60 million in potential clinical development and regulatory milestones and up to $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. Olema and Aurigene will jointly direct further preclinical work and, if successful, Olema will lead clinical development as well as regulatory and commercial activities.

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Murali Ramachandra, Ph.D., chief executive officer of Aurigene, said: "This agreement with Olema further validates Aurigene's proven expertise in discovery and preclinical development of effective cancer therapeutics. We look forward to the continued development of an Aurigene program, which will now be ably supported by the extensive development capability of Olema."

Dr. Reddy's Laboratories is an integrated pharmaceutical company. It offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations. Our major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology.

The drug maker's consolidated net profit tumbled 76% to Rs 87.50 crore in 15% increase in revenues to Rs 5436.80 crore in Q4 March 2021 over Q4 December 2021.

Shares of Dr. Reddy's Laboratories advanced 3% to end at Rs 4326.10 on the BSE yesterday.

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First Published: Jun 10 2022 | 8:39 AM IST

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