Dr Reddy's arm Aurigene inks pact with US firm Curis

Aurigene, the wholly-owned subsidiary of Dr Reddy’s Laboratories Ltd, has entered into an exclusive collaboration agreement with the US-based Curis Inc for focusing on immuno-oncology and selected precision oncology targets. Curis Inc is a biotechnology company focused on the development and commercialisation of innovative drug candidates for the treatment of human cancers.
 
The collaboration provides for inclusion of multiple programs and Curis retains the option to license compounds once a development candidate is nominated within each respective program. The partnership draws from each company’s respective areas of expertise, with Aurigene having the responsibility for conducting all discovery and preclinical activities, including IND-enabling studies and providing Phase 1 clinical trial supply, and Curis responsible for all clinical development, regulatory and commercialisation efforts worldwide, excluding India and Russia.
 
The first two programs under the collaboration are an orally available small molecule antagonist of programmed death ligand-1 (PD-L1) in the immuno-oncology field, and an orally available, small molecule inhibitor of Interleukin-1 receptor-associated kinase 4 (IRAK4) in the precision oncology field. Curis expects to exercise its option to obtain exclusive licenses to both programs and file IND applications for a development candidate from each in 2015.
 
In connection with the transaction, Curis has agreed to issue to Aurigene approximately 17.1 million shares of its common stock, or 19.9% of its outstanding common stock immediately prior to the transaction, in partial consideration for the rights granted to Curis under the collaboration agreement. The shares to be issued to Aurigene will be subject to a lock-up agreement until January 18, 2017, with a portion of the shares being released from such lock-up in equal installments between now and such date.
 
The agreement provides that the parties will collaborate exclusively in immuno-oncology for an initial period of approximately two years, with the option for Curis to extend the broad immuno-oncology exclusivity.
 
In addition, Curis has agreed to make payments to Aurigene - totalling upto $ 243 million – in various stages provided agreed milestones are achieved.
 
Curis has agreed to pay Aurigene royalties on its net sales ranging between high single digits to 10% in territories where it commercialises products and will also share in amounts that it receives from sub-licensees depending upon the stage of development of the respective molecule.