DR. REDDY'S ANNOUNCES INDIA'S FIRST MAJOR DRUG CO-DEVELOPMENT AND COMMERCIALIZATION DEAL

Dr. Reddy's Laboratories (NYSE: RDY) announced today that the Company has entered into a co-development and commercialization agreement with Denmark based Rheoscience A/S for the joint development and commercialization of balaglitazone (DRF 2593), a partial PPAR-gamma agonist, for the treatment of type 2 diabetes. Under the terms of the agreement, Rheoscience shall fund all the costs associated with the Phase III clinical trials of DRF 2593 and Dr. Reddy's shall pay Rheoscience a pre-determined amount towards its share of the development costs.

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