Dr. Reddy’s Laboratories announced that it has entered into a definitive agreement with Citius Pharmaceuticals under which it has sold all of its rights to E7777 (a modified diphtheria toxin IL-2 fusion protein) and certain related assets.
Under the terms of the deal, Dr. Reddy’s will receive $ 40 million upon closing, followed by an approval milestone payment of up to $ 40 million related to the approval of the CTCL indication. (cutaneous T lymphoma) and up to $ 70 million for additional indication approvals. In addition, Dr. Reddy’s will receive certain sales-based milestones and installment top-up payments.
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In March 2016, Dr. Reddy’s acquired the exclusive worldwide rights (excluding Japan and Asia) to the investigational cancer agent E7777 from Eisai Co. Ltd.
Erez Israel, CEO of Dr Reddy’s, said in a statement, “Addressing the unmet needs of oncology patients remains a priority area for us. E7777 has significant potential as an important component of systemic therapy for CTCL and other cancers. After the acquisition of Eisai, significant progress was made on the development front of CTCL. We are confident in Citius’ ability to realize the full potential of E7777 in the treatment of CTCL as well as in its ability to develop this promising drug for other indications in oncology and immuno-oncology ”.