| According to the pact, Rheoscience will fund all the costs associated with the phase III clinical trials of the molecule and Dr Reddy's will pay Rheoscience a predetermined amount towards its share of the development costs. |
| Rheoscience will retain the marketing rights for the European Union and China markets while Dr Reddy's will get the rights in the US and the rest of the world. Rheoscience will obtain all the necessary regulatory approvals on behalf of Dr Reddy's in the US. |
| On receiving the final approval from the USFDA, Dr Reddy's is to make a predetermined milestone payment to Rheoscience. The agreement will be valid for ten years from the date of commercialisation. |
| Besides, if the partners choose to commercialise the product on their own, there is a staggered royalty on sales payable by the partners to each other. If the partners choose to commercialise the product through a third party, then each partner is entitled to share a predetermined percentage of the net proceeds of commercialisation received by it with the other partner. |
| Dr Reddy's will also retain the right to supply clinical development and commercial quantities on arms-length basis. |
| G V Prasad, chief executive officer, Dr Reddy's Laboratories, said in a press release, "This deal provides Dr Reddy's with an opportunity to commercialise new chemical entities (NCEs) in key markets thereby transforming it into an innovation driven business. This deal, together with the announcement of Perlecan yesterday, reflects our commitment to accelerate the discovery efforts as well as clinical development programmes towards realising our vision of becoming a discovery-led global pharmaceutical company. The addition of balaglitazone - a partial PPAR-gamma agonist - would expand the treatment options available to the physicians globally for management of type 2 diabetes." |
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