Dr Reddy to sell its Rights of Anti-cancer Agent to Citius Pharma
Dr. Reddy Laboratories has sold all rights to E7777 (an engineered IL-2-diphtheria toxin fusion protein) and various related assets to Citius Pharmaceuticals Inc under a formal agreement.
“Unmet patient needs in oncology continue to be a top priority for us. E7777 has a lot of promise as a component of systemic cancer therapy for CTCL and other malignancies. Significant progress was made on the CTCL development front after Eisai was acquired. We have faith in Citius’ capacity to fully realize the promise of E7777 in the treatment of CTCL, as well as in their ability to further develop this promising medicine for other cancer and immuno-oncology indications “Erez Israeli, CEO of Dr. Reddy’s Laboratories, commented.
The Aim behind the Agreement
Dr. Reddy will get $40 million upfront when the transaction closes, followed by approval milestone payments of up to $40 million for the CTCL (cutaneous T-cell lymphoma) indication approval and up to $70 million for future indication approvals under the Citius agreement. The Hyderabad-based drugmaker will also get sales-based milestones and tiered earn-out payments, according to a statement released on Saturday.
It obtained the exclusive global rights to Eisai Co’s investigational anti-cancer drug E7777 in March 2016, excluding Japan and Asia. This will be followed by a $40 million milestone payment for the approval of the CTCL (cutaneous T-cell lymphoma) indication and up to $70 million for future indication approvals, according to the company. Dr. Reddy’s will also be paid based on sales milestones and a tiered earn-out structure.
CEO Erez Israeli’s Take on this Agreement
E7777 has a lot of promise as a component of systemic cancer therapy for CTCL and other malignancies. Significant progress was achieved on the CTCL development front after it was acquired from Eisai, according to CEO Erez Israeli. “We have faith in Citius’ capacity to fully realize the promise of E7777 in the treatment of CTCL, as well as their ability to develop this promising medicine for new cancer and immuno-oncology indications,” he said.
Dr. Reddy’s Laboratories Ltd. (RDY) has agreed to sell all of its rights to E7777, an engineered IL-2-diphtheria toxin fusion protein, as well as certain related assets, to Citius Pharmaceuticals, Inc.
This collaboration between Dr. Reddy and Citius Pharma is predicted as a significant move in the pharmaceutical industry and we have to wait and watch for its actual impact in the longer run.
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