Dr. Reddy's Laboratories enters into definitive agreement with Citius Pharmaceuticals, Inc

Dr. Reddy's Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY, NSEIFSC: DRREDDY, along with its subsidiaries together referred to as "Dr. Reddy's"), announced that it has entered into a definitive agreement with Citius Pharmaceuticals, Inc. ("Citius") pursuant to which it sold all of 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, Dr. Reddy's 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.

Erez Israeli, Chief Executive Officer, Dr. Raddy's, 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".

Shares of Dr. Reddy's Laboratories Ltd., was last trading in BSE at Rs. 4898.5 as compared to the previous close of Rs. 4857.2. The total number of shares traded during the day was 41166 in over 3515 trades.

The stock hit an intraday high of Rs. 4913.05 and intraday low of 4863.55. The net turnover during the day was Rs. 201346928.

Source : Equity Bulls

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