Lowenstein Sandler represented Coya Therapeutics (NASDAQ: COYA), a clinical-stage biotechnology company, in a development-and-license deal with Dr. Reddy's Laboratories for its COYA 302 drug, an investigational therapy for the treatment of Amyotrophic Lateral Sclerosis, or ALS.
The agreement grants Dr. Reddy's an exclusive license to commercialize COYA 302 in the U.S., Canada, the European Union, and the U.K. for ALS patients.
Under the deal, Coya will be eligible for up to $677.3 million in sales-based milestone payments. Dr. Reddy's will also pay Coya sales royalties. Dr. Reddy's will make a $7.5 million upfront payment to Coya, and Coya could earn up to $40 million if the drug reaches certain development and regulatory milestones.
Trading in shares of Coya was halted ahead of the news.
On December 6, Lowenstein also represented Coya in the sale of $26.5 million worth of stock in a private placement that includes participation from former U.S. Secretary of Commerce Wilbur Ross; Ross is expected to join the biotech company's board.
The company said it plans to use the proceeds to support preclinical, clinical, and regulatory activities, among other initiatives.
In January 2023, Lowenstein Sandler represented Coya in the closing of its initial public offering.
The Lowenstein deal team for the transaction with Dr. Reddy’s included Michael J. Lerner, Nicholas G. Mehler, and Nathaniel A. Perle. The private placement team included Lerner, Steven M. Skolnick, Daniel C. Porco, and Vincent R. Scala.