Exelixis inks pact with Dr Reddy’s arm

Our Bureau Hyderabad | Updated on August 01, 2019

US-based Exelixis Inc has entered into an exclusive collaboration with Aurigene Discovery Technologies, an arm of Dr Reddy’s Laboratories Ltd. The agreement gives Exelixis, an oncology-focused biotechnology firm, the opportunity to in-license as many as six programmes from Aurigene, according to a statement by Exelixis Inc.

The agreement

Under the agreement terms, Exelixis will make an upfront payment of USD 10 million for exclusive options to license three pre-existing programmes from Aurigene, it added. In addition, Exelixis and Aurigene will initiate three Aurigene-led drug discovery programmes on mutually agreed upon targets, in exchange for additional option payments of $2.5 million per programme, the statement said.

Exelixis will also contribute research funding to Aurigene to facilitate discovery and preclinical development work on all six programmes, it added. As the programmes mature, Exelixis will have the opportunity to exercise an exclusive option for each programme up until the time of investigational new drug (IND) acceptance.

“If Exelixis decides to exercise an option, it will make an option exercise payment to Aurigene and assume responsibility for that programme's future clinical development and commercialisation including global manufacturing,” it added.

Aurigene will be eligible for clinical development, regulatory, and sales milestones, as well as royalties on sales. Under the terms of the agreement, Aurigene retains limited development and commercial rights for India and Russia. A release from Exelixis was shared by Hyderabad-based Dr Reddy’s on the BSE.

Published on August 01, 2019

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