Dr. Reddy's Acquires Rights For Anticancer Agent E7777 From Eisai

(RTTNews) - Dr. Reddy's Laboratories (500124, DRREDDY, RDY) Wednesday announced a licensing agreement with Eisai Co., Ltd for worldwide development and commercialization rights for Eisai's investigational anticancer agent E7777, which is undergoing phase 2 clinical trials in Japan. It targets cutaneous T-cell lymphoma or peripheral T-cell lymphoma. The agreement excludes Japan and Asia and Eisai will be responsible for the development in these markets. Dr. Reddy's holds the option for rights to develop and market the agent in India.

As per the agreement, Eisai will receive milestone payments in line with obtaining marketing approval and the achievement of agreed upon sales targets. The two companies aim to accelerate development and maximize the value of E7777.

E7777 is a fusion protein that combines the interleukin-2 (IL-2) receptor binding domain with diphtheria toxin fragments. The agent specifically binds to IL-2 receptors on the cell surface, causing diphtheria toxins that have entered cells to inhibit protein synthesis.

Raghav Chari, executive vice president, Proprietary Products Group, Dr. Reddy's Laboratories, said, "E7777 has significant potential as an important component of systemic therapy for CTCL (cutaneous T-cell lymphoma). This therapy represents an extension of our current efforts in the dermatology space to an important segment of skin-related cancers."