Dr. Reddy's Expansion Into the U.S. Funded by Venture Capitalist

Indian drugmaker Dr. Reddy's Laboratories has secured up to $56 million in venture capital to fund a major expansion into the U.S. generics market.

Under the terms of the agreement with ICICI Venture, Dr. Reddy's will use the capital infusion to fund the development, registration and legal costs associated with the commercialization of abbreviated new drug applications (ANDAs) to be filed with the FDA in fiscal 2005 and fiscal 2006. Once the products are marketed, Dr. Reddy's will pay ICICI royalties on net sales for a period of five years.

Dr. Reddy's didn't provide details about its U.S. development plans, saying only that the money would be used to develop ANDAs on a "predetermined basis." Company officials weren't available to comment before press time.