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Novo, Novartis sign deal on Dr Reddy's drug

Swiss giant Novartis Pharma AG has acquired exclusive US rights for a diabetes drug licensed by Denmark's Novo Nordisk from Indian drugmaker Dr Reddy's Labs, Novartis and Novo said on Thursday.

The drug, codenamed NN622 by Novo Nordisk, shows promise in simultaneously lowering lipids and sensitising the body's insulin receptors to the circulating hormone, and is among the first of its kind in the world.

It is an original research product of the Hyderabad-based Dr Reddy's Labs, one of the few Indian drug-makers engaged in new molecule discovery research.

Novo Nordisk makes 'milestone' payments to Dr Reddy's laboratories based on the progress of the drug through various phases of trials.

Analysts expect the drug to go into phase-III, the final phase of trials before it can be marketed, by the end of 2001.

Novo Nordisk continues to be responsible for development and global regulatory approval, with Novartis making upfront and milestone payments subject to progress relating to specified events, and will pay royalties.

Dr Reddy's shares were up 6.93 per cent at Rs 1,681.05 on Thursday, while the Sensex was down 0.51 per cent.

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