Dr. Reddy’s Laboratories and ClinTec International signed an agreement for the joint development of an anticancer compound. DRF 1042 was discovered by Dr. Reddy’s and belongs to the Topoisomerase inhibitors class of compounds.
Dr. Reddy’s has completed Phase I trials for DRF 1042 in India. Under the terms of the agreement, Dr. Reddy’s and ClinTec International will conduct Phase II and Phase III trials. Dr. Reddy’s retains the commercialization rights for the U.S. and rest of the world, except ClinTec International’s territories that include most of Europe.
On commercialization of the product, Dr. Reddy’s will receive royalty on sales by ClinTec International in its designated regions and ClinTec International will receive the royalty from U.S. sales from Dr. Reddy’s. If either party out-licenses the drug product, the proceeds will be shared by both the parties in a predetermined ratio, excluding Dr. Reddy’s territories outside the U.S. Dr. Reddy’s will also retain the exclusive rights to supply commercial quantities of the drug product.