Dr. Reddy’s Laboratories enters into collaboration with Merck Serono

Dr. Reddys Laboratories Ltd. | Pharmaceuticals & Drugs | Healthcare | BSE: 500124 | NSE: DRREDDY

06 Jun 2012 Evaluate

Dr. Reddy’s Laboratories has entered into a partnership with Merck Serono, a division of Merck KGaA, Darmstadt, Germany, to co-develop a portfolio of biosimilar compounds in oncology, primarily focused on monoclonal antibodies (MAbs). The partnership covers co-development, manufacturing and commercialization of the compounds around the globe, with some specific country exceptions.

The deal structure calls for Merck Serono and Dr. Reddy’s to co-develop the molecules included in the agreement. Dr. Reddy’s will lead early product development and complete Phase I development. Upon completion of Phase I, Merck Serono will take over manufacturing of the compounds and will lead Phase III development. The agreement is based on full R&D cost sharing.

Merck Serono will undertake commercialization globally, outside the US and with the exception of select emerging markets which will be co-exclusive or where Dr. Reddy’s maintains exclusive rights. At the time of commercialization, Dr. Reddy’s will receive royalty payments from Merck Serono. In the US, the parties will co-commercialize the products on a profit-sharing basis.

Dr. Reddy’s has been a pioneer and leader in the biosimilars space through proven product development capabilities and the launch of four biosimilars molecules to date. The partnership with Merck Serono expands on Dr. Reddy’s presence in the biosimilar space in select emerging markets and enables participation globally.