Dr Reddys Laboratories Ltd has informed BSE that the Company and 7TM Pharma on March 10, 2008 announced the signing of drug discovery collaboration on selected drug targets in the area of metabolic disorders.

Under the terms of the agreement, Dr. Reddy’s and 7TM Pharma will collaborate to identify clinical candidates for pre-selected targets. Both the parties will jointly develop these candidates from the pre-clinical stage up to Phase IIa (proof-of-concept). On successful completion of a Phase IIa study, the Companies may either license-out the candidate for further development and commercialization to a larger pharmaceutical Company or continue the further co-development and commercialization jointly. The financial terms of the agreement have not been disclosed.

Dr. Rajinder Kumar, President of Research, Development and Commercialization, Dr. Reddy’s, commented: “7TM has established a track record as one of the leading Drug Discovery Companies focusing on GPCRs, and we are excited at the prospects of combining 7TM’s capabilities with Dr. Reddy’s to discover and develop innovative products.”