Dr Reddy's sells rights to anti-cancer agent E7777 (denileukin diftitox) to Citius

Indian pharma major Dr Reddy’s Laboratories (BSE: 500124) has entered into a definitive agreement with US specialty pharma company Citius Pharmaceuticals (OTCQB: CTXR) under which it sold all of its rights to E7777 (denileukin diftitox), an engineered interleukin (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 T-cell lymphoma) indication approval and up to $70 million for additional indication approvals. Furthermore, 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 Japanese pharma major Eisai (TYO: 4523), which gained rights to the product from Ligand Pharma in 2006.