Dr. Reddy's inks $56mn R&D deal with ICICI Venture Funds

Dr Reddy's Laboratories has entered into a $56 million agreement with ICICI Venture Funds Management Company for the development and commercialization of abbreviated new drug applications (ANDAs) to be filed in 2004-05 and 2005-06.

According to a release issued by Dr. Reddy's to the BSE, ICICI Venture, as per the terms of the agreement, will fund the development, registration and legal costs related to the commercialization of ANDAs on a pre-determined basis.

"The agreement would cover most of the ANDAs to be filed by Dr. Reddy's during the years 2004-05 and 2005-06, and ICICI Venture will be paid royalty by Dr. Reddy's on net sales for a period of 5 years," the release said.

In the first phase, ICICI Venture will fund $22.50 million with an option to invest an additional $33.50 million in the second phase.

Commenting on the partnership, G V Prasad, CEO of Dr. Reddy's, said: "We are pleased to partner with ICICI Ventures in what I believe is an unique R&D funding model. This model will enable us to share the product development costs while leveraging our global scale and infrastructure. We look forward to a successful partnership with ICICI Venture."