Under the agreement, Ranbaxy was expected to receive around $100m payment from the American drug company, Merck, Economic Times reported.
Reportedly, Merck has transferred the research programs to a wholly subsidiary of Dr Reddy’s, Aurigine.
Ranbaxy and MSD, the Indian arm of Merck & Co spokespersons said that they have suspended the drug discovery programme for the development of anti-bacterial and antifungal medicines, while, a spokesperson from Dr Reddy’s declined to comment, quoted Economic Times.