Dr.Reddy's Laboratories rose 0.71% to Rs 4934 after the company signed a deal with Citius Pharmaceuticals, Inc. to sell its rights to anti-cancer agent E7777 (denileukin diftitox).
In an exchange filing made on Saturday (4 September 2021), the drug maker said that it has entered into a definitive agreement with Citius Pharmaceuticals, Inc. (Citius) pursuant to which it sold all of its rights to E7777 (an engineered IL-2-diphtheria toxin fusion protein) and certain related assets.
Under the terms of agreement, Dr. Reddy's will receive $40 million upfront upon the closing of the transaction, followed by approval milestone payment of up to $40 million related to the CTCL (cutaneous T-cell lymphoma) indication approval and up to $70 million for additional indication approvals. Further, Dr. Reddy's will receive certain sales-based milestones and tiered earn-out payments.
In March 2016, Dr. Raddy's had acquired the exclusive global rights (excluding Japan and Asia) to the investigational anti-cancer agent E7777 from Eisai Company.
Erez Israeli, chief executive officer, Dr. Raddy's, said: "Addressing unmet patient needs in oncology remains a prime focus area for us. E7777 has significant potential as an important component of systemic therapy for CTCL and other cancers.
Post acquiring from Eisai, significant progress was made on the CTCL development front. We are confident of Citius' ability to realize the full potential of E7777 in the treatment of CTCL as well as in their ability to develop this promising drug for additional oncology and immuno-oncology indications.
Dr Reddy's Laboratories is an integrated pharmaceutical company. Through its three businesses - pharmaceutical services & active ingredients, global generics and proprietary Products.
The company's consolidated net profit declined by 36% to Rs 380.40 crore on a 11.4% rise in net sales to Rs 4,919.40 crore in Q1 FY22 over Q1 FY21.
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