Dr Reddys Laboratories Ltd and ClinTec International have entered into an agreement for the joint development of an anti-cancer compound, DRF 1042, belonging to the topoisomerase inhibitors class of compounds for use as potential treatment of various types of cancer.

Under the terms of the agreement, Dr Reddys will retain the commercialisation rights for the US and rest of the world excluding ClinTec International''s territories for most of Europe that include most major European markets.

The financial terms of the agreement have not been disclosed.

ClinTec International is a UK-based, privately owned full service contract research organisation located in Windsor (UK) with presence in with presence in over 30 countries worldwide, including India, South Africa and the Middle East. It provides clinical research support services to the pharmaceutical, biotechnology and medical device industry and assists them in their product development efforts.

ClinTec''s has substantial experience in oncology, neurology, dermatology and rheumatology.

Hyderabad-based Dr Reddys has completed Phase 1 clinical trials for DRF 1042 in India. Under the terms of the agreement, Dr Reddys and ClinTec International will co-develop DRF 1042 and jointly undertake Phase II and Phase III clinical trials. The two companies intend securing the US FDA and EMEA approvals.

On commercialisation of the product, Dr Reddys will receive royalty on sales by ClinTec International in its designated territories and ClinTec International will receive royalty on sales by Dr Reddys in the US. In the event of the product being out-licensed either party, the proceeds would be shared at a pre-determined ratio. However, if the out licenses takes place in Dr Reddys territories outside the US, Dr Redys would not be required to share the proceeds with the UK company.

Dr Reddys will also retain the exclusive rights to supply commercial quantities of the drug product.

Commenting on the co-development and commercialisation deal, G V Prasad, chief executive officer, Dr Reddys, said, "We are excited about the R&D collaboration with ClinTec International as it will bring a very exciting cancer drug to the market and is a step forward in our efforts to transform ourselves into a discovery led global pharmaceutical company. ClinTec International brings to this partnership their vast experience and in-depth expertise in the anti-cancer clinical development space. We look forward to this exciting collaboration with ClinTec International."