Merck ends pact with Ranbaxy

NEW DELHI: American drugmaker Merck & Co has terminated its two-year-old partnership to develop anti-infective medicines with Ranbaxy Laboratories that could have brought payments of over $100 million to the Indian pharma company over five years.

Separate reports have said the world's second largest drugmaker has now shifted the research programme to Aurigine, a wholly-owned drug discovery subsidiary of Dr Reddy's. But this could not be independently verified.

The spokesmen for Ranbaxy and MSD, the Indian arm of Merck & Co, said they have terminated the drug discovery programme to develop anti-bacterial and antifungal medicines. Dr Reddy's spokesman declined comment. An analyst with a global brokerage firm said that the news was expected. "Ranbaxy has no intentions of doing new drug research." He said the termination should not have any significant financial implication for Ranbaxy and it would be premature to estimate any gains for Dr Reddy's.