Thursday July 27, 2017 0 comments
FORT COLLINS -- India-based Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY) and Fort Collins-based CHD Bioscience Inc., a privately-held biopharmaceutical company, today announced a global licensing agreement for the clinical development and commercialization of Dr. Reddy’s Phase III clinical trial candidate, DFA-02.
DFA-02 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.
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.
“We are pleased to announce our partnership with CHD Bioscience,” said Anil Namboodiripad, senior VP and president of Promius Pharma, a wholly owned subsidiary of Dr. Reddy’s.
“We feel that the needs of patients undergoing surgery will be well served by CHD, given their strong focus on offering targeted solutions for surgical site infections. DFA-02 has demonstrated promising results in clinical studies, and we are excited about the prospect of CHD undertaking further development and commercialization of the asset.”
“This transaction advances our strategy to become a world leader in the targeted prevention and treatment of drug-resistant infections,” said Michael Handley, CHD Bioscience CEO.
“Building on our development work with VERIOX™ in orthopedics and wound care, DFA-02 potentially extends our ability to help patients in the surgical setting who may be at high risk of infections without exposing the patient to large amounts of systemic antibiotics.
“DFA-02 fits our strategy of targeting the site of the infection rather than the whole patient, and we are pleased to be continuing the great work that Dr. Reddy’s has started.”