Dr Reddy's up 2% after subsidiary collaborates with COYA for ALS drug

This isn't the first time the two companies have collaborated.

Shares of Dr Reddy's Laboratories Limited traded 2 percent higher to Rs 5,849 in morning trade on December 7 after the company announced that Dr.Reddy's Laboratories SA, a wholly-owned subsidiary, has entered into an exclusive collaboration for the development and commercialisation of COYA 302 for the treatment of amyotrophic lateral sclerosis (ALS). "Under the Agreement, Dr. Reddy’s will obtain commercialization rights for COYA 302 in the United States, Canada, the European Union and the United Kingdom, for patients with ALS," the pharma major said in a regulatory filing on December 6.

At 11:20 am, the counter was trading at Rs 5,801, up 1.3 percent from the previous close on the NSE.

Follow our market blog for all the live action

COYA 302 is a combination biologic under investigation for subcutaneous administration. The mechanism of action of COYA 302 aims to suppress chronic and sustained inflammation that underlies certain neurodegenerative diseases.

As per the agreement, Dr Reddy’s will make an upfront payment of USD 7.5 million to Coya. Upon the first acceptance by the U.S. Food and Drug Administration (FDA) for the drug, Dr. Reddy’s will provide an additional USD 4.2 million. Another payment of USD 4.2 million will be made upon the dosing of the first patient in the first Phase 2 trial of COYA 302.

ALS is a fatal motor neuron disease. It is characterised by progressive degeneration of nerve cells in the spinal cord and brain.

This isn't the first time the two companies have collaborated. In early 2023, Coya entered into an in-licensing agreement with Dr Reddy’s to license
its proposed biosimilar abatacept for the development and commercialisation of COYA 302.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.