Dr Reddy’s Laboratories shares were trading in the green and 2% higher on 7 December after the company announced that its wholly-owned subsidiary, Dr Reddy’s Laboratories SA, has entered into an exclusive collaboration for the development and commercialisation of COYA 302 for the treatment of amyotrophic lateral sclerosis (ALS).
In its filing, the company said, “Under the Agreement, Dr. Reddy’s will obtain commercialisation rights for COYA 302 in the United States, Canada, the European Union and the United Kingdom, for patients with ALS.”
ALS is a fatal motor neuron disease that is characterised by its progressive degeneration of nerve cells in the spinal cord and brain.
As a part of the agreement, the company will make an upfront payment of $7.5 million to Coya, and the company will provide an additional $4.2 million upon the first acceptance by the USFDA (U.S. Food and Drug Administration). The company will make a further payment of $4.2 million upon the dosing of the first patient in the first Phase 2 trial of COYA 302.
COYA 302 is a combination biologic under investigation for subcutaneous administration. COYA 302 works on suppressing chronic and sustained inflammation that underlines certain neurodegenerative diseases.
This is the first time both companies have partnered up; in early 2023, Coya entered into a licensing agreement with the company to license its proposed biosimilar abatacept for the development and commercialisation of COYA 302.
At 3:30 pm, the shares of Dr Reddy’s Laboratories closed 0.80% higher at Rs 5,776.20 on NSE.