Delhi: Ranbaxy Laboratories (RLL) and GlaxoSmithKilne
(GSK) have extended their four-year-old drug-development
new agreement modifies and expands the terms of the strategic
alliance the two entered in 2003 to provide Ranbaxy expanded
drug-development responsibilities and further financial
opportunities. Under the original agreement, Ranbaxy carried
out the chemical tests required to take drug leads being
developed to the stage of candidate selection.
the new agreement, Ranbaxy will advance beyond mere candidate
selection, going right up to the stage of completion of
clinical proof of the efficacy of the drug concerned.
GSK will then go in for further clinical development of
each programme and take the resulting products through
the regulatory approval process to final commercialisation.
is likely to receive substantial milestone payments for
products it develops, which are subsequently launched
by GSK, and up to double-digit royalties on worldwide
will retain the right to co-commercialise the products
new milestones and royalties will apply both to future
drug discovery programmes and to the two programmes currently
in progress at Ranbaxy, that were started under the original
agreement with GSK.