Innoviva Specialty Therapeutics, a subsidiary of Innoviva Inc (Nasdaq:INVA) focused on innovative therapies in critical care and infectious disease, said on Tuesday that it has entered into an exclusive distribution and licensing agreement with Indian pharmaceutical company Dr. Reddy's Laboratories Ltd (BSE:500124, NSE:DRREDDY, NYSE:RDY, NSEIFSC:DRREDDY) for XACDURO (sulbactam for injection; durlobactam for injection).

This agreement covers development and commercialisation of XACDURO across South and Central America, the Caribbean, Russia, and CIS countries, subject to regulatory approvals.

The partnership aims to expand access to XACDURO for treatment of serious Acinetobacter baumannii-calcoaceticus complex infections, where carbapenem-resistant rates exceed 70% in the covered regions. Acinetobacter is classified as a critical threat pathogen by the World Health Organization.

Under the agreement, Dr. Reddy's will manage development, regulatory, and commercialisation activities in the licensed territories, while Innoviva retains rights in unlicensed markets. Innoviva Specialty Therapeutics is eligible for upfront, milestone, and tiered royalty payments on net sales.

XACDURO is approved in the United States for hospital-acquired and ventilator-associated bacterial pneumonia caused by susceptible Acinetobacter isolates in adults, with FDA approval granted in May 2023.