Dr. Reddy’s sells rights to anticancer agent E7777

Hyderabad-based Dr. Reddy’s Laboratories, along with its subsidiaries has entered into a definitive agreement with US-based Citius Pharmaceuticals pursuant to which it sold all of its rights to E7777 (an engineered IL-2diphtheria toxin fusion protein) and certain related assets. Under the terms of the 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.