Benzinga | Sep 7, 2021 06:57AM EDT

Dr Reddy's To Sell Its Anti-Cancer Agent To Citius Pharma

* Citius Pharmaceuticals Inc has agreed to acquire anti-cancer agent E7777 from Dr. Reddy's Laboratories Ltd (NYSE:RDY).

* E7777 is an engineered IL-2-diphtheria toxin fusion protein.

* In March 2016, Dr. Reddy's had acquired the exclusive global rights, excluding Japan and Asia, from Eisai Co Ltd (OTC:ESALY).

* Dr. Reddy's will receive $40 million upfront on the transaction's closing, followed by a milestone payment of up to $40 million related to the CTCL (cutaneous T-cell lymphoma) indication approval and up to $70 million for additional indication approvals.

* Further, the Hyderabad-based drugmaker said it would receive certain sales-based milestones and tiered earn-out payments.

* Price Action: RDY stock closed at $67.09 on Friday.