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      Dr. Reddy's working out deal with Danish company

      Dr Reddy's Laboratories Limited (DRL) is working out a deal with a Danish company with regard to the development of balaglitazone, a drug aimed at addressing the problem of diabetes, according DRL chairman, K Anji Reddy.
      Replying to a shareholder's question at the DRL's 21st annual general meeting here on Wednesday, Reddy said that balaglitazone development was likely to materialise by next year. Phase II development of the drug has been completed.

      Earlier, addressing the AGM, Reddy said that DRL had developed an "innovative and unique" model for financing and sharing the risk of development of new drugs. Several potential partners have evinced keen interest in participating in such a model.

      "I am hopeful that we can progress the negotiations fairly rapidly and find a sustainable way to develop new drug candidates," he said, adding that DRL's model would ensure that returns to the company would be very attractive should the molecule be commercialised.

      In the past, DRL had retained commercial rights to India. The company would now have the option to retain commercial rights in larger territories.

      Referring to the company's initiative of entering the regulated markets of the US and Europe, Reddy said that DRL has robust products in the pipeline and commercial launches would pick up momentum in the next financial year.

      July 28, 2005


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