Dr Reddy's enters into agreement with CHD Bioscience
Hyderabad based Dr Reddy's and biopharma company CHD Bioscience announced a global licensing agreement for the clinical development and commercialisation of Dr Reddy's phase III clinical trial candidate, DFA-02.
Under the terms of the agreement, Dr Reddy's would receive equity in CHD valued at $30 million upon an IPO of CHD or a minimum of $30 million in cash within 18 months of execution of the agreement. Dr Reddy's will also receive additional milestone payments of $40 million upon USFDA approval. In addition, CHD will pay Dr Reddy’s double-digit royalties on sales and commercial milestones.
The drug is intended to be used for the prevention of surgical site infections, following non-emergency, elective colorectal surgery. Phase II studies for DFA-02 have been successfully completed, and the product will be transitioning to pivotal Phase III registration studies