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Novartis move on Novo Nordisk

HYDERABAD: Dr Reddy's Laboratories Ltd (DRL) announced here on Monday that Novartis Pharma AG has decided not to continue its collaboration with Novo Nordisk for the commercialisation of DRF-2725, the dual-acting insulin sensitiser compound that was earl ier outlicensed by Dr Reddy's in favour of Novo Nordisk.

Novartis had earlier entered into an alliance with Novo Nordisk and obtained rights to commercialise DRF-2725 in the US, Canada and Mexico. The compound is currently in development for the treatment of type-2 diabetes.

Following the fresh move, Novartis has returned to Novo Nordisk all the rights on commercialisation of Dr Reddy's anti diabetic compound.

The reasons for the withdrawal of Novartis from the project was not revealed by Dr Reddy's. However, the company was of the view that the termination of agreement between Novo Nordisk and Novartis would not affect any of the terms and conditions of Dr Re ddy's agreement with Novo Nordisk.

According to the Novo Nordisk President and Chief Executive Officer, Mr Lars Rebien Sorensen, ``Our development programme for DRF-2725 continues unaffected by Novartis' decision. Initiation of the phase-3 programme is progressing according to schedule an d as announced on September 7, 2001, we expect these studies to start later this year. Results from our phase-2 studies confirmed that the profile of DRF-2725 meets the therapeutic objectives we had set. In terms of commercialisation of the product in No rth America, we will now be considering various alternatives.''

The Chairman of Dr Reddy's, Mr K. Anji Reddy, said his company was pleased with the results of phase-2 studies which confirm beneficial efficacy and safety profile of DRF-2725, thereby enabling Novo Nordisk to select doses with a positive benefit/risk ra tio for further development. -- Our Bureau