COYA, Dr. Reddy's Sign Deal for Proposed Abatacept Biosimilar

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Coya Therapeutics, Inc. COYA announced that it has entered into a worldwide agreement with Dr. Reddy’s Laboratories Limited RDY. Per the terms of the agreement, Coya will get the license to develop and commercialize Dr. Reddy’s proposed biosimilar for Orencia (abatacept) for the development and commercialization of combination product, COYA 302 for neurodegenerative diseases.

In the year so far, the shares of Coya Therapeutics have fallen 14.7% compared with the industry’s decline of 7.2%.

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COYA 302 is a combination product of COYA 301 and CTLA4-Ig, which intends to suppress neuroinflammation via multiple immunomodulatory pathways for the treatment of neurodegenerative diseases.

Per the terms, Coya has obtained an exclusive, royalty-bearing license to Dr. Reddy’s proposed biosimilar Abatacept for the development and commercialization of Coya 302 for the treatment of certain neurological diseases for sale in multiple territories, including North and South America, EU, UK and Japan.

In exchange, Coya is liable to pay a one-time non-refundable upfront fee to Dr. Reddy’s. Additionally, Coya will owe tiered payments to Dr. Reddy’s based on the former’s achievement of certain developmental milestones. The license agreement further includes royalties to Dr. Reddy’s on net sales of Coya 302 within its licensed territory on a tiered basis.

Coya will develop COYA 301 itself while sourcing CTLA4-Ig from Dr. Reddy’s. Coya expects to file an investigational new drug application for COYA 302 with the FDA in the second half of 2023 and also plans to initiate a phase Ib/II study on COYA 302 as a potential treatment for Amyotrophic Lateral Sclerosis.

The agreement also permits Dr. Reddy’s to commercialize COYA 302, by providing a license to COYA 301, Coya’s low-dose IL-2, in territories not otherwise granted to Coya. This will construe royalties on net sales from Dr. Reddy’s in its territories to Coya, based on the same tiered structure as Coya owes Dr. Reddy’s. Additionally, the agreement also grants permission to both parties to enter into a mutually satisfactory commercial supply agreement at an appropriate time.

Zacks Rank and Stocks to Consider

Coya currently has a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the same industry are Aptinyx APTX and Annovis Bio ANVS, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 90 days, the estimate for Aptinyx’s 2023 loss per share has narrowed from 77 cents to 56 cents. In the year so far, the shares of Aptinyx have fallen by 51.3%.

APTX’s earnings witnessed an average earnings surprise of 9.53%, beating all four estimates in the trailing four reported quarters.

In the past 90 days, the consensus estimate for Annovis’ 2023 loss per share has narrowed from $2.94 to $2.93. In the year so far, the shares of Annovis have increased by 13.6%.

ANVS’ reported loss per share was narrower than the estimated loss per share in the last reported quarter, delivering an earnings surprise of 20.51%.

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