Dr Reddy's Laboratories and CHD Bioscience announce a global licensing agreement

For clinical development and commercialization of Dr Reddy's Phase III clinical trail candidate

Dr Reddy's Laboratories and CHD Bioscience Inc. has 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 successful completed and the product will be transitioning to pivotal phase III registration studies.

Under the terms of 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 up on USFDA approval. In addition, CHD will pay Dr Reddy's double digit royalties on sales and commercial milestones.

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