Dr Reddy's and CHD Biosciences sign up for licensing of a wound care drug

Fort Collins, CO, Princeton, NJ and Hyderabad, India, July 27, 2017 – Dr Reddy’s Laboratories Ltd. and CHD Bioscience Inc., a privately-held biopharmaceutical company, today announced a global licensing agreement for the clinical development and commercialization of Dr. Reddy’s phase III clinical trial candidate, DFA-02. It 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.


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.


Commenting on the signing of the agreement, Anil Namboodiripad, Ph.D., Senior Vice President, Proprietary Products, and President, Promius Pharma, a wholly owned subsidiary of Dr. Reddy’s, 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. DFA-02 has demonstrated promising results in clinical studies, and we are excited about the prospect of CHD undertaking further development and commercialization of the asset.”


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