ICICI Ventures may exit Dr Reddy's R&D unit

ICICI Venture Funds and Citigroup Venture Capital are likely to pull out their investment in Dr Reddy’s Laboratories’ drug research company, Perlecan Pharma, on concerns over the commercial viability of its experimental drugs. The two investors have begun talks with Dr Reddy’s to sell their stake for their initial investment of $26 million plus interest.

Perlecan Pharma started in September 2005 with four new chemical entities from the Dr Reddy’s stable and has the first right of refusal for further discoveries by the Hyderabad-based company. However, the company this year abandoned the development of a new drug code-named DRL 11605, aimed at treating diabetes and obesity. Perlecan’s pipeline is now left with three molecules: DRF 10945, a molecule targeted at metabolic disorders, currently in phase II of clinical trials, RUS 3108, a cardiovascular drug in phase I, and finally DRL 16536, an anti-diabetic drug in late pre-clinical studies.

Read more in The Economic Times article.