Dr Reddys Laboratories announced that Curis and Aurigene have entered into a collaboration agreement focused on immuno-oncology and selected precision oncology targets.

The collaboration provides for inclusion of multiple programs and Curis retains the option to license compounds once a development candidate is nominated within retains the option to license compounds once a development candidate is nominated within each respective program.

In connection with the transaction, Curis has agreed to issue to Aurigene approximately 17.1 million shares of its common stock, or 19.9% of its outstanding common stock immediately prior to the transaction, in partial consideration for the rights granted to Curis under the collaboration agreement.

Curis has agreed to pay Aurigene royalties on its net sales ranging between high single digits to 10% in territories where it commercializes products and will also share in amounts that it receives from sublicensees depending upon the stage of development of the respective molecule.

Shares of Dr Reddys gained Rs 33.45, or 1.01%, to settle at Rs 3,361.45. The total volume of shares traded was 12,323 at the BSE (Thursday).