Dr. Reddy's Laboratories Limited (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY, hereafter known as "Dr. Reddy's"), announced today that it has entered into a definitive asset purchase agreement, pursuant to which Dr. Reddy's will sell its U.S. and Canada territory rights for ELYXYB (celecoxib oral solution) 25 mg/ml, to BioDelivery Sciences International, Inc. (BDSI).
Under the terms of agreement, Dr.Reddy's will receive U.S.$6 million upfront upon closing followed by U.S.$9 million one year from closing. Further, Dr. Reddy's is eligible to receive event based, sales based milestones and quarterly earn-out payments.
EL YXYB (previously known as DFN-15) is indicated for the acute treatment of migraine with or without aura in adults.
The closing of the transaction is subject to satisfactory completion of customary closing conditions including the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act), as amended.
Erez Israeli, Chief Executive Officer of Dr. Reddy's Laboratories, said: "EL YXYB reaffirmed our commitment to innovation and to develop meaningfully differentiated products that address significant unmet needs of patients. EL YXYB is an oral solution dosage form which makes it convenient for patients to take it immediately upon emergence of migraine attacks. Further, we are confident in BDSl's expertise and believe in their ability to realize the full potential of EL YXYB."
INDICATION AND USAGE
EL YXYB is indicated in adults for the acute treatment of migraine with or without aura.
Limitations of Use:
- EL YXYB is not indicated for the preventive treatment of migraine.
Shares of Dr. Reddy's Laboratories Ltd., was last trading in BSE at Rs. 4769.6 as compared to the previous close of Rs. 4721.2. The total number of shares traded during the day was 105881 in over 10566 trades.
The stock hit an intraday high of Rs. 4809.75 and intraday low of 4730.2. The net turnover during the day was Rs. 506146997.