MUMBAI: Hyderabad based Dr Reddy's and biopharma company CHD Bioscience today announced a global licensing agreement for the clinical development and commercialisation of Dr Reddy's phase III clinical trial candidate, DFA-02.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.The drug 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, Reddys said. "We are pleased to announce our partnership with CHD Bioscience.

Source: Economic Times July 27, 2017 12:00 UTC