Dr Reddy’s Laboratories and XenoPort Inc, a biopharmaceutical company, have entered into an agreement by which Dr Reddy’s Laboratories will be granted exclusive...
Dr Reddy’s Laboratories and XenoPort Inc, a biopharmaceutical company, have entered into an agreement by which Dr Reddy’s Laboratories will be granted exclusive US rights for the development and commercialisation of XenoPort’s clinical-stage oral new chemical entity, XP23829. DRL said that it will receive rights to develop and commercialize XP23829 for all indications. In return, XenoPort will receive a $47.5 million upfront payment and an additional $2.5 million for transfer of certain clinical trial materials to Dr Reddy’s.
DRL plans to develop XP23829 as a potential treatment for moderate-to-severe chronic plaque psoriasis and may develop the drug for relapsing forms of multiple sclerosis (MS).
XenoPort will also be eligible to receive up to $190 million upon the achievement by Dr Reddy’s Laboratories of certain regulatory milestones. In addition, XenoPort will be eligible to receive up to $250 million upon the achievement of commercial milestones, and up to mid-teens royalty payments based on potential net sales of XP23829 in the US.
“XP23829 complements our internal development efforts, which have primarily focused on the mild-to-moderate psoriasis segment to date. In other markets, fumarates have been used as first line choices of treatment prior to initiation of biologic therapies in patients with moderate-to-severe psoriasis. We intend to initiate the registration programme for XP23829 as soon as feasible so that we can accelerate the availability of this important treatment choice for moderate-to-severe psoriasis patients in the US market,” Raghav Chari, executive vice president, Proprietary Products Group, DRL, said in a statement.
“As one of our key objectives for 2016, we were interested in finding a strong partner that would recognize the opportunity of this innovative therapy that we believe will make a significant difference in the lives of psoriasis and MS patients. We are now fully focused on our Horizant (gabapentin enacarbil) extended-release tablets commercialization effort,” Vincent J Angotti, chief executive officer, XenoPort, Inc said.