Dr Reddy's Laboratories Ltd. on Saturday announced that it has entered into a definitive agreement with Citius Pharmaceuticals to sell 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 Tcell lymphoma) indication approval and up to $70 million for additional indication approvals.
Further, Hyderabad-based pharma company will receive certain sales-based milestones and tiered earn-out payments.
In March 2016, Dr Reddy's had acquired the exclusive global rights (excluding Japan and Asia) to the investigational anti-cancer agent E7777 from Eisai Co. Ltd.
"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 realise 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," said Erez Israeli, Chief Executive Officer.
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