Transgene Biotek Ltd (TBL) has entered into a licensing and technology transfer agreement with Dr Reddy's Laboratories (DRL) for the out-licensing of a technology for the manufacture of Orlistat. Through this tieup, DRL will gain worldwide rights to a unique technology for the manufacture and commercialization of Orlistat API which was developed exclusively by TBL. The company will receive an upfront payment, additional payments for certain commercial milestones, and royalties on the sale of Orlistat API in all countries worldwide.

Orlistat is a lipase inhibitor used for obesity management that acts by preventing the absorption of fats from the human diet, thereby reducing caloric intake, and is the most studied weight loss medicine in the world, with more than 100 clinical studies, involving more than 30,000 patients. Is is used in the treatment of Obesity including management of weight loss and weight maintenance.

TBL earlier out-licensed its recombinant Hepatitis B Vaccine technology to Serum Institute of India, one of the largest vaccine producers in world.