Schering Plough, the US-based $6.19 billion pharmaceuticals major, is close to bagging the rigts to market in America an anti-diabetese molecule developed by Dr Reddy's Laboratories (DRL).
Danish drug major Novo Nordisk is carrying out clinical trials to determine the safety and efficacy of the molecule, the first of the two developed by DRL
Novo Nordisk is conducting clinical trials of two of DRl's molecules to treat diabetese. It will market these in foreign countries if the trials prove successful. The concer-ned molecule is scheduled to enter the second phase of its trials.
DRL has rec-eived a $6.25 million milestone payment from Novo Nordisk till now and the next tranche is expected soon.
Sources said the concerned parties had arrived at an understanding involving Schering Plough for the US market.
However, DRL managing director Satish Reddy denied any knowledge of such a development.
"Novo Nordisk has to consult us in such a case but they have not. These are market rumours," he said.
However, sources close to the company said the deal was on.
They claimed that Schering had estimated the US market for a diabetes drug at $800 million-$1billion.
Analysts said Novo Nordisk and Schering Plough have a history of cooperating in marketing products.
For instance, Prandin, a molecule to treat diabetese belonging to Boehringer Ingelheim and licensed to Novo Nordisk, was being co-marketed by Schering Plough in the US, the analysts said.
A similar arrangement may be worked out in this case as Schering Plough has a strong marketing network in the US. Novo Nordisk has a strong presen
