Dr Reddy's and CHD Bioscience sign up for licensing of a wound care drug
MUMBAI: Hyderabad based Dr Reddy's and biopharma company CHD Bioscience today 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, Reddys said.
"We are pleased to announce our partnership with CHD Bioscience. 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," said Anil Namboodiripad, President, Promius Pharma, a wholly owned subsidiary of Dr Reddy's.
"This transaction advances our strategy to become a world leader in the targeted prevention and treatment of drug-resistant infections. 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," said Michael Handley, director and chief executive officer of CHD Bioscience.