INDIA – Dr Reddy’s subsidiary Aurigene Discovery Technologies and Olema Pharmaceuticals, Inc have inked a pact with US-based Olema Pharmaceuticals to discover and develop novel cancer therapies.
“We continue to have confidence in OP-1250 and its potential to become the endocrine therapy of choice for ER+ / HER2- breast cancer, and believe this collaboration will give us an opportunity to expand our focus on new treatments for cancer in women,” said Sean P. Bohen, M.D., Ph.D., President and Chief Executive Officer of Olema Oncology.
Under the agreement, Olema will make an upfront licensing payment of US$8 million for rights to a pre-existing Aurigene programme.
Aurigene will be eligible for up to US$60 million in potential clinical development and regulatory milestones and up to US$370 million in potential commercial milestones, as well as royalties ranging from the mid-single digit to the low double digits based on annual net sales.
During the research term, Olema will contribute funding to Aurigene to facilitate ongoing discovery efforts.
Olema and Aurigene will jointly direct further preclinical work and, if successful, Olema will lead clinical development as well as regulatory and commercial activities.
Aurigene has an impressive history of successful collaborations and combined with Olema’s deep understanding of cancer biology and extensive development expertise.
Olema Pharmaceuticals also said it has cash sufficient to fund planned research and development operations into the second-half of 2024.
Meanwhile, Reddy’s Labs has got another competitor in the suboxone market. Dr. Reddy’s has an 18% market share in the generic market so far.
Aveva, an affiliate of Apotex, received an abbreviated new drug application (ANDA) approval of Suboxone. It is the fourth generic company to receive approval.
Mylan and Alvogen are the other two generics Aveva can potentially launch immediately. The impact on Dr. Reddy would mostly be through lower pricing.
Global Suboxone Market to Surpass US$8.4 billion by 2030. Stock is down more than 20% from 52-Week Highs. The company will also be meeting CITI, Morgan Stanley, and Goldman Sachs from June 7-14.
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