India's Lupin inks second multi-million deal with a global pharma major

Indian drugmaker Lupin Limited (BSE: 500257) scored another triumph, signing a deal with German family-owned pharma major Boehringer Ingelheim, which could generate over $700 million for the company in milestone payments for the company, but the firm’s shares gained just 0.88% to 742.00 by close of trading today.

Boehringer announced a licensing, development and commercialization agreement for Lupin’s MEK inhibitor compound (LNP3794) as a potential targeted therapy for patients with difficult-to-treat cancers. The partnership aims to develop Lupin’s lead MEK inhibitor compound in combination with one of Boehringer’s innovative KRAS inhibitors for patients with gastrointestinal and lung cancers harboring a broad range of oncogenic KRAS mutations.

Lupin will receive an upfront payment of $20 million and potential additional payments for successful achievement of defined clinical, regulatory and commercial milestones for a total deal value of more than $700 million. Additionally, Lupin will be entitled to receive double-digit royalties on the sales of the product.