Dr. Reddy's Laboratories, through its wholly owned subsidiary Promius Pharma, LLC, announced today that it has out-licensed the future development, manufacturing, and commercialization 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 commercialization of DFD-06 in the United States. Promius Pharma is eligible to receive certain pre- and post-commercialization milestone payments of up to USD 32.5 million, followed by fixed royalty payments on net sales.

'We believe Encore and its management team are well positioned to realize 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." says Anil Namboodiripad, Ph.D., Senior Vice President, Proprietary Products, and President, Promius Pharma.

Shares of the company gained Rs 21.85, or 1.13%, to trade at Rs 1,955.00. The total volume of shares traded was 15,230 at the BSE (10.22 a.m., Tuesday).