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XenoPort, Dr. Reddy’s Laboratories collaborate on licensing agreement for new chemical entity

XenoPort Inc. and Dr. Reddy’s Laboratories announced their partnership to purse a U.S. licensing agreement that grants Dr. Reddy’s Laboratories exclusive rights for the commercialization and development of XenoPort’s oral chemical candidate XP23829, according to a press release.

XP23829 is being evaluated for the treatment of moderate-to-severe chronic plaque psoriasis.

XenoPort will receive $47.5 million upfront and $2.5 million for the clinical trial materials transfer to Dr. Reddy’s Laboratories in exchange for surrendering exclusive rights. In addition, XenoPort will be able to receive up to $190 million for regulatory milestone achievements, $250 million for commercial milestone achievements and royalty payments based on XP23829 potential net sales in the U.S., according to the release.

“Based on today’s available treatments, physicians need additional oral medications that are both safe and effective for patients with psoriasis. Fumaric acid esters possess a unique anti-inflammatory mechanism of action and have been used to treat psoriasis in Germany for over 20 years. XP23829, a novel fumaric acid ester, has the potential to be a meaningful treatment option for patients with moderate-to-severe-psoriasis,” Mark Jackson, MD, clinical professor of medicine, dermatology, University of Louisville, Kentucky, said in the release.