Dr. Reddy’s Laboratories Ltd, through its wholly owned subsidiary Promius Pharma, LLC, has announced that it has out-licensed the future development, manufacturing and commercialisation rights of DFD-06, a topical high potency steroid, to Encore Dermatology Inc. The drug is intended to be used for treatment of moderate to severe plaque psoriasis.

Under the terms of the agreement, Encore will be responsible for the commercialisation of DFD-06 in the United States. Promius Pharma is eligible to receive certain pre- and post- commercialisation milestone payments of up to US$32.5 million, followed by fixed royalty payments on net sales.

"We believe Encore and its management team are well positioned to realise the full potential of this asset DFD-06. We look forward to obtaining NDA approval this fall, enabling Encore’s management team to quickly deliver this product to the providers and their patients," said Anil Namboodiripad, senior vice president, Proprietary Products, and president, Promius Pharma.