Dr. Reddy’s Labs signs deal worth up to $150m to sell E7777 rights to Citius
Dr. Reddy’s Laboratories (Dr. Reddy’s Labs) has agreed to divest its rights to E7777, an engineered IL-2-diphtheria toxin fusion protein, and certain related assets to US-based Citius Pharmaceuticals in a deal worth up to $150 million.
The Indian pharma company will get $40 million upfront upon the closing of the deal. It will be eligible for a milestone payment of up to $40 million if E7777 is approved for cutaneous T cell lymphoma (CTCL) and up to $70 million should it be approved for other indications.
Furthermore, Dr. Reddy’s Laboratories will be entitled to get certain sales-based milestones and tiered earn-out payments.
The Indian pharma company had purchased the exclusive global rights (excluding Japan and Asia) of the investigational anti-cancer agent in 2016 from Eisai Co. Ltd.
Erez Israeli — CEO of Dr. Reddy’s Laboratories 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.”