Novartis has acquired the exclusive US rights for a diabetes drug licensed by Denmark's Novo Nordisk from Indian drug maker, Dr Reddy's Labs.
The Swiss life sciences giant said in a joint statement with Novo that the drug, an original research product of the Hyderabad-based Dr Reddy's Labs, is codenamed NN622.
Analysts say that it shows strong promise in combating diabetes, by simultaneously lowering lipids and sensitising the body's insulin receptors to the circulating hormone.
Under the agreement, Novartis will have the rights to sell the drug in the United States, Canada and Mexico.
Novartis, which is one of Europe's largest drug groups, will make a one-time payment to Novo, followed by milestone payments, which are subject to the drug's process past specific stages. It will also pay royalties once the drug reaches the market. The value of deal was not disclosed.
The drug was first licensed to Novo in 1998, and is expected to be the first to reach the market among a new generation of dual action sensitisers being developed.
"Novo Nordisk partnering with a strong company like Novartis should take our discovery to a commanding position in the North American market," Dr Reddy's Labs founder and chairman Anji Reddy said in a statement.
swissinfo with agencies