The agreement covers the development and commercialization of most of Dr Reddy’s abbreviated new drug applications (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. On commercialization of these products, Dr Reddy’s will pay ICICI Venture royalty on net sales for a period of five years.
ICICI Venture will fund $22.5 million dollars in the first phase with an option to invest an additional $33.5 million dollars in the second phase.
Commenting on the partnership, GV Prasad, CEO of Dr Reddy’s, 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.”