: Pharma major Dr Reddy’s Laboratories announced on Friday that its wholly-owned step-down subsidiary, Dr Reddy’s Laboratories Inc, has acquired a nearly 6.5 per cent stake in the Israeli development-stage biotech player Edity for a cash consideration of $2 million.
The Hyderabad-based company informed the bourses that it has picked up 10,14,442 Preferred A-1 shares, equivalent to 6.46 per cent of Edity’s share capital on a fully diluted basis, for US$1.9715 per share, by way of conversion of SAFE ( simple agreement for future equity).
“The Preferred A-1 shares have been allotted on December 28, 2023. No further governmental or regulatory approvals is required,” Dr Reddy’s Labs said in a regulatory filing to the bourses on Friday.
Edity is developing a breakthrough platform technology for intracellular delivery of therapeutic proteins using immune cells. The therapeutics developed using Edity’s technology could be used in multiple therapeutic areas, including gene editing, rare genetic disorders, oncology, and inflammation.
The Hyderabad-based pharma giant stated that the funds it has invested would be utilized by Edity to further develop its technology platform. This includes performing pre-clinical studies for safety and efficacy evaluation, securing intellectual property through patent filings, and exploring licensing opportunities, collaborations, and market entry strategies to optimize the commercial viability of Edity’s technology platform, it added.
Edity, incorporated in Israel on October 22, 2019, is yet to commercialize its technology or products, which is why it does not generate any revenues, and its turnover of the last three years is nil, according to Dr Reddy’s Labs.
