Dr Reddy's Labs partners with Fujifilm, GRA for favipiravir

Dr Reddy's Laboratories on Wednesday announced partnership with Japan's Fujifilm Corporation and Dubai's Global Response Aid (GRA) for the development, manufacture and sales of Avigan tablets (favipiravir), a potential treatment of COVID-19.

Under the tripartite agreement, Fujifilm grants Dr Reddy's the exclusive rights of manufacturing. It also grants both Dr Reddy's and GRA the rights to develop, sell and distribute Avigan in all countries other than Japan, China and Russia. Dr Reddy's would have exclusive rights for development, selling and distribution of Avigan in India.

Further, Fujifilm would receive an upfront undisclosed license fee and royalties on sales from Dr Reddy's and GRA, it said.

Fujifilm will provide Dr Reddy's and GRA an array of data on Avigan's preclinical and clinical studies that it has accumulated so far. In addition, Fujifilm will grant Dr Reddy's right to use Avigan's patents of formulation and manufacturing method. Dr Reddy's will herewith establish a setup for manufacturing drugs of the same quality as Avigan, and utilize GRA's global sales network to supply the manufactured drugs swiftly and in a stable manner.

The Fujifilm Group is currently conducting a clinical study on Avigan targeting COVID-19 patients in Japan and the US, and is working to increase the drug's production by partnering with domestic and overseas companies. Dr Reddy's and GRA shall introduce the product in the market post all applicable approvals in the respective countries, it added.

Shares of Dr Reddy's Laboratories were down 0.76% to Rs 3911. The stock traded in the range of Rs 3,887 to Rs 3,963.60 so far.

Dr Reddy's Laboratories' consolidated net profit jumped 71.5% to Rs 781.10 crore on a 10.3% rise in net sales to Rs 4,431.80 crore in Q4 March 2020 over Q4 March 2019.

Dr Reddy's Laboratories is an integrated pharmaceutical company.

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