Dr. Reddy’s Laboratories Acquired US Rights of Psoriasis Pill From Struggling Biotech XenoPort
The agreement underlines that Dr. Reddy’s Laboratories will receive exclusive US rights to develop and commercialize XP23829 and in exchange for this Xenoport will receive a $47.5 million upfront payment and an additional $2.5 million for transfer of certain clinical trial materials to Dr. Reddy’s laboratories.
Upon the achievement of certain regulatory milestones by Dr. Reddy’s, which could take a period of several years, XenoPort shall be eligible to receive an additional $190 million. XenoPort shall also be eligible to receive up to $250 million upon achievement of commercial milestones and up to mid teens royalty payments based on net sales of XP23829 in the US.
XP23829 is an oral drug discovered by XenoPort. It is a fumaric acid ester compound and is a prodrug of monomethyl fumarate. XP23829 holds a US Composition of Matter patent that has a current expiry date of 2029.
Dr. Mark Jackson, M.D., clinical professor of medicine, Dermatology, University of Louisville, stated, “Based on today’s available treatments, physicians need additional oral medications that are both safe and effective for patients with psoriasis. Fumaric acid esters possess a unique anti-inflammatory mechanism of action and have been used to treat psoriasis in Germany for over 20 years. XP23829, a novel fumaric acid ester, has the potential to be a meaningful treatment option for patients with moderate-to-severe psoriasis.”
“XP23829 complements our internal development efforts, which have primarily focused on the mild-to-moderate psoriasis segment to date. In other markets, fumarates have been used as first line choices of treatment prior to initiation of biologic therapies in patients with moderate-to-severe psoriasis. We intend to initiate the registration program for XP23829 as soon as feasible so that we can accelerate the availability of this important treatment choice for moderate-to-severe psoriasis patients in the U.S. market,” said Raghav Chari, Executive Vice President, Proprietary Products Group, Dr. Reddy’s Laboratories.
“We are very pleased to announce this agreement with Dr. Reddy’s Laboratories,” said Vincent J. Angotti, Chief Executive Officer, XenoPort, Inc. “As one of our key objectives for 2016, we were interested in finding a strong partner that would recognize the opportunity of this innovative therapy that we believe will make a significant difference in the lives of psoriasis and MS patients. We are now fully focused on our HORIZANT® (gabapentin enacarbil) Extended-Release Tablets commercialization effort.”
Earlier this year, XenoPort planned on selling its entire R&D portfolio. Till date XenoPort has only one approved drug horizant for restless legs syndrome which also later disappointed XenoPort and the partner Glaxosmithkline in terms of sales.
On the other hand Dr. Reddy’s is ready to explore the potential of the oral new chemical entity (NCE) XP23829 further as a potential treatment of moderate-to severe chronic plaque psoriasis and relapsing forms of multiple sclerosis and for its development and marketing in the U.S. market
The agreement is subject to review by the U.S. Government under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act, as amended, and will become effective only after clearing HSR review.