Dr Reddy’s-GSK pact runs into rough weather, review likely

Dr Reddy’s-GSK pact runs into rough weather, review likely

An agreement between GlaxoSmithKline Plc and Dr Reddy's Laboratories (DRL) to develop and market select products across emerging markets outside India seems to have run into rough weather. Sources close to the development say the pact is likely to be reviewed again. However, efforts are also on to rekindle the business relationship.

The companies had signed the agreeement in 2009. Under its terms, GSK would gain access to Dr Reddy’s diverse portfolio and future pipeline of more than 100 branded pharmaceuticals in fast-growing therapeutic segments such as cardiovascular, diabetes, oncology, gastroenterology and pain management. The products were to be manufactured by Dr Reddy’s and then licensed and supplied to GSK in various emerging markets such as Africa, West Asia, Latin America and the Asia-Pacific, excluding India.

An email sent to Dr Reddy's did not elicit any response. “Though there is no news of termination, there is a possibility of a review of relationship. It's only a small part of the revenue any way ,'' DRL sources told FE. And, for GSK too, there is a change in priority as its pipeline of innovative drugs is maturing, sources added.