Dr. Reddy's Granted U.S. Rights For XenoPort's Clinical-stage XP23829

(RTTNews) - Dr. Reddy's Laboratories (RDY) and XenoPort, Inc. (XNPT) announced a license agreement pursuant to which Dr. Reddy's Laboratories will be granted exclusive U.S. rights for the development and commercialization of XenoPort's clinical-stage oral new chemical entity, XP23829. XenoPort will receive a $47.5 million up-front payment and an additional $2.5 million for transfer of certain clinical trial materials. XenoPort will also be eligible to receive up to $190 million upon the achievement by Dr. Reddy's Laboratories of certain regulatory milestones. 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 potential net sales of XP23829 in the U.S.

XP23829 is an investigational drug discovered by XenoPort. In September 2015, XenoPort announced results of a Phase 2 clinical trial of XP23829 as a potential treatment for moderate-to-severe chronic plaque-type psoriasis.

Dr. Reddy's 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.