Hyderabad-based pharmaceutical major, Dr Reddy’s Laboratories Limited, has entered into a partnership with Merck Serono, a division of Germany-based Merck KGaA, to co-develop a portfolio of biosimilar compounds in oncology, primarily focused on monoclonal antibodies (MAbs).
Dr Reddy’s has launched four biosimilars molecules so far. This partnership with Merck Serono covers co-development, manufacturing and commercialisation of the compounds, and expands the company's presence in the biosimilar space globally in select emerging markets, according to a release.
GV Prasad, vice-chairman and chief executive of Dr Reddy’s, said: "Biosimilars is an important area of future growth and these products give us the opportunity to provide affordable and innovative medicines to patients globally. With the recent EMA (European Medicines Agency and FDA (Food and Drug Administration) guidance on biosimilars, it is clear that any significant player in the field will need strong biologics development, manufacturing and commercialisation capabilities. So in this regard, Merck Serono’s and Dr Reddy’s joint expertise in these fields makes for a powerful global partnership.”
The partnership is based on full research and development (R&D) cost-sharing method. Dr Reddy’s will lead the early product development and complete the Phase-I development, while Merck Serono will take over the manufacturing of the compounds and will lead the Phase-III development.
Merck Serono will undertake commercialisation globally, outside the US and with the exception of select emerging markets which will be co-exclusive or where Dr Reddy’s maintains exclusive rights.
Dr Reddy’s will receive royalty payments from Merck Serono upon commercialisation. And in the US markets, both parties will co-commercialise the products on a profit-sharing basis, it added. However, additional terms of the deal were not disclosed.
The company’s scrip is currently trading at Rs 1,612 on the BSE, down 0.42% over the previous close of Rs 1,618.85.