Novartis gets diabetes rights from Dr Reddy

Novartis Pharma has entered into a licensing agreement with Dr Reddy'sLaboratories of India in a deal which gives the Swiss group worldwide exclusive rights to develop and commercialize the Hyderabad-based firm's insulin sensitizer DRF 4158. Novartis will pay up to $55 million in upfront and milestone payments for specific clinical and regulatory endpoints, as well as royalties, and Dr Reddy will have co-promotion rights for DRF 4158 in India.

DRF 4158 is a second-generation dual-acting peroxisome proliferator activated receptor alpha and gamma agonist for the potential treatment of type 2 diabetes, diabetic dyslipidemia, hypertension and obesity. The compound is currently in preclinical trails.

Joerg Reinhardt, head of development at Novartis' drug division, said that the agreement gives his firm "an excellent opportunity to work with one of India's premier pharmaceutical research groups." Anji Reddy, the Indian drugmaker's chairman, said the deal represents "a very significant event in the evolution of the group as a research-based pharmaceutical company, and went on to say that "we are indeed thrilled to be partnering with Novartis, a company I personally admire."