Dr Reddy’s Laboratories (DRL) has entered an agreement with Hyderabad-based Transgene Bioteck Ltd (TBL) to manufacture and commercialise the active pharmaceutical ingredient (API) Orlistat, used to treat obesity.
Transgene has come out with a new process to manufacture the drug, which is already being sold in the market by Roche and GlaxoSmithKline as Xenical and Alli, respectively.
“DRL will get worldwide rights to the unique technology to manufacture and commercialise Orlistat API, which was developed exclusively by TBL,” Transgene said in a statement filed with the bourses on Thursday.
Orlistat is a lipase inhibitor used for obesity management, which acts by preventing the absorption of fats from the human diet, thereby reducing caloric intake and is the most studied weight-loss medicine with more than 100 clinical studiesinvolving more than 30,000 patients.
It is used in the treatment of obesity including management of weight loss and weight maintenance. Orlistat is also known to reduce blood pressure and appears to prevent the onset of Type 2 diabetes.
Transgene had earlier out-licensed its recombinant Hepatitis B vaccine technology to Serum Institute of India.
“The new alliance combines TBL’s technology with Dr Reddy’s manufacturing skills and extensive global sales and marketing capabilities. TBL will receive an upfront payment, additional payments for certain commercial milestones and royalties on the sale of Orlistat API worldwide,” the Transgene’s statement said.
It, however, did not disclose the exact amount to be paid by DRL.
Though unwilling to elaborate due to silent period regulations, DRL said in a statement, “We continue to look at good technology deals which could be value accretive to our business and this is one of those.”
However, Orlistat is also known to have several side effects, including gastrointestinal disorders.
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