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DRL inks deal with Merck arm

The largest Indian drugmaker by revenue, Dr Reddy?s Laboratories has inked a deal with Merck Serono, a division of German drugmaker Merck, to co-develop, manufacture and market biosimilar drugs in the cancer segment.

The largest Indian drugmaker by revenue, Dr Reddy?s Laboratories has inked a deal with Merck Serono, a division of German drugmaker Merck, to co-develop, manufacture and market biosimilar drugs in the cancer segment.

The deal structure entails Dr Reddy?s leading the early product development and complete phase-I trials. After the phase-I trials are completed, Merck Serono would take over manufacturing of the compounds and would lead phase-III development. The cost of the R&D would be shared by the two firms.

A Dr Reddy’s executive told FE that the deal would also consider and select oncology drugs from the existing portfolio and the pipeline of the Indian company. This would translate into Merck marketing Dr Reddy’s biosimilar drugs globally.

In the US market, both the companies would co-commercialise products on a profit-sharing basis.

Outside of the US, Dr Reddy’s may choose to retain marketing rights for specific geographies, where it has built a strong presence already. Analysts identified these markets as India, Russia and a few Latin American countries.

For all other geographies, Merck would commercialise the select basket of products and pay royalty to Dr Reddy’s. These markets could be geographies where Merck has distribution clout or where Dr Reddy’s markets through partners. These markets, according to analysts, could include several geographies in Europe and Japan.

“With the recent EMA (European) and USFDA guidance on biosimilars, it is clear that any significant player in the field will need strong biologics development, manufacturing and commercialization capabilities. Merck Serono?s and Dr Reddy?s joint expertise in these fields makes for a powerful global partnership,? said GV Prasad, CEO of Dr Reddy?s.

“Our expertise in developing, manufacturing, and commercialising biopharmaceuticals gives us a clear advantage in the biosimilars field,? said Stefan Oschmann, CEO of Merck Serono. Sharing know-how, risks and rewards is the right approach to enter the emergent biosimilars market and will be a win-win for both parties, he added.

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First published on: 07-06-2012 at 02:32 IST
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