Hyderabad-based Dr Reddy's group has received a milestone payment of $1.75 million from Danish giant Novo Nordisk for 1999-2000. This payment, though well short of analysts expectations, follows the advancement of Dr Reddy's first anti-diabetic molecule, DRF-2593, to phase II clinical trials.
Dr Reddy's Laboratories (DRL) official spokesperson, when contacted, said: ``A payment of $1.75 million has been made in the Reddy Antilles account for1999-2000.'' Reddy Antilles NV is a wholly-owned subsidiary of DRL.
DRL, driven by chairman Anji Reddy's vision to emerge as a ``change leader''in the new millennium, has licensed two diabetes lead molecules to NovoNordisk. The Indian company has since received milestone payments of $6.25 million from Novo Nordisk, though this earnings stream is expected to increase once these drugs move higher up in the development ladder.
While DRF-2593, in licensed by Novo Nordisk, has moved up to phase II, the company's second molecule DRF-2725 is in phase-I clinical trials. The company is also awaiting approval from the Drugs Controller General of India (DCGI) for conducting clinical trials on its anti-cancer compound DRF 1042. DRL has also commenced talks with international drug companies to license out its painkiller molecule (a Cox-2 inhibitor) which falls in the same category as Merck's Vioxx and GD Searle's Celebra. DRL, however, says that it will continue working on plans to file an investigational new drug (IND) application in the US even as it pursues alliance opportunities for the molecule.
Analysts at some of the leading Mumbai-based equity research firms, however, said, ``We expected milestone inflows of $6 million to $7 million and are certainly disappointed.'' There is no official word on whether this $1.75million represents only part of the payment for the DRF-2593's progress into phase-II trials.