Dr Reddy's Laboratories lost 0.07% to Rs 3,045 at 11:08 IST on BSE after the company and XenoPort, Inc announced entering into a license agreement for the development and commercialization of the latter's clinical-stage oral new chemical entity.
The announcement was made during market hours today, 28 March 2016.Meanwhile, the S&P BSE Sensex was down 128.09 points or 0.51% at 25,209.47.
On BSE, so far 17,000 shares were traded in the counter as against average daily volume of 44,987 shares in the past one quarter. The stock was volatile. The stock lost as much as 1.02% at the day's low of Rs 3,016 so far during the day. The stock rose as much as 0.88% at the day's high of Rs 3,074.30 so far during the day. The stock had hit a record high of Rs 4,382.95 on 20 October 2015. The stock had hit a 52-week low of Rs 2,750 on 21 January 2016. The stock had underperformed the market over the past one month till 23 March 2016, declining 1% compared with the Sensex's 8.23% rise. The scrip had, however, outperformed the market in past one quarter, advancing 0.9% as against Sensex's 1.98% fall.
The large-cap company has equity capital of Rs 85.30 crore. Face value per share is Rs 5.
Dr Reddy's Laboratories (Dr Reddy's) and XenoPort, Inc. announced that they have entered into a license agreement pursuant to which Dr Reddy's will be granted exclusive US rights for the development and commercialization of XenoPort's clinical-stage oral new chemical entity (NCE), XP23829. Dr Reddy's plans to develop XP23829 as a potential treatment for moderate-to-severe chronic plaque psoriasis and may potentially develop XP23829 for relapsing forms of multiple sclerosis (MS), Dr Reddy's said in a statement.
Under the terms of the agreement, Dr Reddy's will receive exclusive US rights to develop and commercialize XP23829 for all indications. In exchange for these rights, XenoPort will receive a $47.5 million up-front payment and an additional $2.5 million for transfer of certain clinical trial materials to Dr Reddy's. XenoPort will also be eligible to receive up to $190 million upon the achievement by Dr Reddy's of certain regulatory milestones, which could be achieved over a period of several years. In addition, XenoPort will be eligible to receive up to $250 million upon the achievement of commercial milestones, and up to mid-teens royalty payments based on potential net sales of XP23829 in the United States, Dr Reddy's said in a statement.
XP23829 is an investigational drug discovered by XenoPort. In September 2015, XenoPort announced results of a Phase 2 clinical trial of XP23829 as a potential treatment for moderate-to-severe chronic plaque-type psoriasis. Psoriasis is a chronic, systemic, inflammatory disease that manifests in the skin and/or joints.
Dr Reddy's Laboratories' consolidated net profit rose 0.8% to Rs 579.20 crore on 3.2% growth in net sales to Rs 3967.90 crore in Q3 December 2015 over Q3 December 2014.
Dr Reddy's Laboratories is an integrated global pharmaceutical company. Through its three businesses - Pharmaceutical Services & Active Ingredients, Global Generics and Proprietary Products - Dr Reddy's offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations.
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