Dr Reddy’s inks agreement with Coya Therapeutics for neurodegenerative diseases treatment

Biotechnology company Coya Therapeutics on Monday announced a worldwide agreement with Dr Reddy’s Laboratories to in-license the proposed Abatacept biosimilar of Dr Reddy’s for the development of Coya’s combination product for neurodegenerative diseases, COYA 302.

A day after the announcement, Dr Reddy's Laboratories shares traded in the green amid an overall positive sentiment in the market.

According to the official press release, the proposed biosimilar Abatacept is a dual biologic intended to suppress neuroinflammation via multiple immunomodulatory pathways, for the treatment of neurodegenerative conditions. It is pertinent to mention that the conditions generally refer to a type of disease in which cells of the central nervous system stop working or die.

As per the agreement between the two companies, Coya has been granted an exclusive, royalty-bearing license to Dr Reddy’s proposed biosimilar Abatacept for sale in multiple territories including North and South America, the EU, United Kingdom, and Japan. As consideration for the license, Coya will pay a one-time non-refundable upfront fee to Dr Reddy’s.

“This is a landmark agreement for Coya in our efforts to develop COYA 302. To partner with such a high-caliber pharmaceutical company like Dr Reddy’s is what every emerging biotechnology company strives for, and we believe that the combined resources of both organisations strengthens our chances to bring this therapeutic modality to patients with neurodegenerative diseases if approved by regulatory authorities,” commented Howard H Berman, Ph.D., CEO of Coya Therapeutics.

Recently, on March 16, Eris Lifesciences had announced to acquire nine dermatology brands from Dr Reddy’s Laboratories, for Rs 275 crore. It was then reported that the acquisition would not be categorised as a ‘related party transaction’ and none of the promoter, promoter group or group companies hold any interest in the acquisition. Only a part of the dermatology portfolio of DRL is being acquired through this transaction.