Dr. Reddy’s and Nordion Inc. (formerly MDS Inc.) Settle Claims
HYDERABAD, India -- March 22, 2013
Dr. Reddy’s Laboratories (NYSE: RDY) announced today that it had settled its
claims against Nordion Inc. (formerly MDS Inc.), headquartered in Ottawa,
Canada, in a case pending in the United States District Court for the District
of New Jersey, for a cash payment of USD 22.5 Million by Nordion to Dr.
Reddy’s. The settlement was concluded on 20 March 2013, with the receipt of
the settlement funds by Dr. Reddy’s.
The case was brought by Dr. Reddy’s in April 2009 seeking damages sustained by
the company caused by a claimed breach by Nordion (then MDS) of its Laboratory
Services Agreement with Dr. Reddy’s. Nordion, as a contract research
organization, provided laboratory services to Dr. Reddy’s, including
bio-equivalency studies, to support Dr. Reddy’s regulatory applications for
approval of generic drugs, including Abbreviated New Drug Applications (ANDAs)
filed with the United States Food and Drug Administration (the USFDA) for
approval to market generic drugs in the United States.
The case arose after the USFDA cited MDS with violations of good laboratory
practices which caused the USFDA not to accept, without further
substantiation, MDS’s laboratory reports performed during the period
This press release includes forward-looking statements, as defined in the U.S.
Private Securities Litigation Reform Act of 1995. We have based these
forward-looking statements on our current expectations and projections about
future events. Such statements involve known and unknown risks, uncertainties
and other factors that may cause actual results to differ materially. Such
factors include, but are not limited to, changes in local and global economic
conditions, our ability to successfully implement our strategy, the market
acceptance of and demand for our products, our growth and expansion,
technological change and our exposure to market risks. By their nature, these
expectations and projections are only estimates and could be materially
different from actual results in the future.
About Dr. Reddy’s
Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) is an integrated global
pharmaceutical company, committed to providing affordable and innovative
medicines for healthier lives. Through its three businesses - Pharmaceutical
Services and Active Ingredients, Global Generics and Proprietary Products –
Dr. Reddy’s offers a portfolio of products and services including APIs, custom
pharmaceutical services, generics, biosimilars, differentiated formulations
and NCEs. Therapeutic focus is on gastro-intestinal, cardiovascular,
diabetology, oncology, pain management, anti-infective and pediatrics. Major
markets include India, USA, Russia and CIS, Germany, UK, Venezuela, S. Africa,
Romania, and New Zealand. For more information, log on to: www.drreddys.com
Dr. Reddy’s Laboratories Ltd.
Investors and Financial Analysts:
Kedar Upadhye, +91-40-66834297
Saunak Savla, +91-40-49002135
Milan Kalawadia (USA), +1 908-203-4931
S Rajan, +91-40-49002445
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