Dr Reddy's up on tie-up with ICICI Venture

DALAL STREET SPIKES

Pharmaceutical firm Dr Reddy's was in the limelight on Monday gaining 2.83 per cent to Rs 772.30 after the company announced that it has entered into a $56 million agreement with ICICI Venture Funds Management Company for the development and commercialisation of generic drugs.

Under the agreement, ICICI Venture will fund the development, registration and legal costs related to the commercialisation of Abbreviated New Drug Applications (ANDAs) on a pre-determined basis.

This agreement covers most of the ANDAs to be filed by Dr Reddy's during 2004-05 and 2005-06. As per the deal, ICICI Venture will provide $22.5 million in the first phase and $33.5 million in the second phase. The pharma pack gained on the back of renewed buying after the recent profit booking. The BSE Pharma Index was up 0.85 per cent at close.