Dr Reddy's Russian arm inks product distribution agreement with Novartis

Dr.Reddy's Laboratories said that its Russia-based subsidiary Dr. Reddy's Laboratories LLC has entered into a distribution agreement with Novartis Pharma LLC for sale and distribution of anti-diabetes products - Galvus and Galvus Met in Russia.

DRL LLC shall distribute the products in retail market and work with health care professionals using the own sales force team and pharmacy chains management.

The Galvus and Galvus Met products leading brands among Dipeptidyl Peptidase-4 (DPP4) molecules saw combined sales of approx. Rs 253 crore (approximately $30 million) during the moving annual total (MAT) March 2024, retail market, in Russia.

It is a distribution deal with no license fee. There is no upfront or down-payment involved in this arrangement. Under this arrangement, Novartis Pharma LLC shall supply the products to DRL LLC at the agreed price and pay bonus to DRL LLC based on the KPIs achievements.

"DRL LLC is planning to enter into cardio and diabetes space. The Galvus and Galvus Met products will be the anchor products and will give synergy in cardio and diabetes DRL LLC portfolio. DRL LLC can potentially develop cooperation with Novartis Pharma LLC in future for cardio space, Dr.Reddy's Labs said in a statement.

Dr. Reddy's Laboratories is engaged in providing medicines. The firm operates in three segments: global generics, pharmaceutical services and active ingredients (PSAI) and proprietary products.

The drug major's consolidated net profit increased 36.26% to Rs 1,307 crore on 12.49% rise in revenues to Rs 7,083 crore in Q4 FY24 over Q4 FY23.

The scrip shed 0.64% to currently trade at Rs 5826.95 on the BSE.

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