Coya Therapeutics has recently secured a significant development-and-license deal with Dr. Reddy's Laboratories for its groundbreaking COYA 302 drug. Designed as an investigational therapy for the treatment of Amyotrophic Lateral Sclerosis (ALS), this partnership holds immense promise in advancing ALS research and patient care.
Under this agreement, Coya stands to receive up to $677.3 million in sales-based milestone payments. Additionally, Dr. Reddy's will pay Coya sales royalties to ensure a mutually beneficial collaboration. As part of the deal, Dr. Reddy's has made an initial upfront payment of $7.5 million to Coya, with potential earnings of up to $40 million if the drug meets specific development and regulatory milestones.
This exclusive license granted to Dr. Reddy's allows them to commercialize COYA 302 in the United States, Canada, the European Union, and the United Kingdom specifically for ALS patients. It is worth mentioning that this agreement comes as an addition to the previously established in-licensing agreement between Coya and Dr. Reddy's earlier this year.
As part of this collaboration, Coya will retain responsibility for the clinical development of COYA 302 and pursuing regulatory approval for ALS patients in the United States. Furthermore, Coya retains the right to commercially distribute COYA 302 to ALS patients in Japan, Mexico, and South America.