Dr Reddys Laboratories Ltd (DRL) has announced that the company has entered into a US$ 56 million agreement with ICICI Venture Funds Management Company for the development and commercialization of ANDAs to be filed in 2004-05 and 2005-06.

Under the terms of the agreement, ICICI Venture will fund the development, registration and legal costs related to the commercialization of ANDAs on a pre-determined basis. This agreement covers most of the ANDAs to be filed by Dr Reddy's during the years 2004-05 and 2005-06. On commercialization of these products, Dr Reddy's will pay ICICI Venture royalty on net sales for a period of 5 years. The specific financial terms of the agreement have not been disclosed.

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

Commenting on the partnership, GV Prasad, chief executive officer, 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."