Dr Reddys Laboratories and XenoPort enter into a U.S. licensing agreement

For development and commercialisation of XenoPort's clinical stage oral NCE, XP23829

Dr Reddys Laboratories and XenoPort Inc. have entered into a licence agreement pursuant to which Dr Reddys Laboratories will be granted exclusive U.S. rights for the development and commercialisation of XenoPort's clinical stage oral new chemical entity, XP23829. Dr Reddys Laboratories plans to develop XP23829 as a potential treatment for moderate to severe chronic plaque psoriasis and may potentially develop XP23829 for relapsing forms of multiple sclerosis (MS).

Under the terms of the agreement, Dr Reddys Laboratories will receive exclusive U.S. rights to develop and commercialise XP23829 for all indications. In exchange of these rights, XenoPort will receive a $47.5 million up front payment and an additional $2.5 million for transfer of certain clinical trial materials to Dr Reddys Laboratories. XenoPort will also be eligible to receive up to $ 190 million upon the achievement by Dr Reddys Laboratories of certain regulatory milestones, which could be achieved over a period of several years. In addition, XenoPort will be eligible to receive up to $250 million upon the achievement of commercial milestones, and up to mid teens royalty payments based on the potential net sales of XP23829 in the United States.

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