The drug was the second one licenced to Novo Nordisk in the anti-diabetic segment. The Dutch multinational has so far paid Rs 15.15 crore towards DRF 2593, an anti-diabetic compound, for its intellectual property rights.

While replying shareholders' queries at the 15th annual general meeting held here on Friday, DRL chairman K Anji Reddy disclosed that the phase I trials on the second anti-diabetic compound will commence shortly. He said that due to long delays in approvals, Dr Reddy's Research Foundation (DRF) had decided to take up clinical trials on the second anti-cancer compound at the Netherlands, while the phase-I trials on first anti-cancer compound DRF-1042 invented by the foundation will commence shortly.

Earlier, addressing the shareholders, Reddy said the company's research organ, DRF has continuing its focus on anti-infectives and pain management drugs, apart from anti-diabetic and anti-cancer. Reddy is hoping to licence another compound which is expected to finish pre-clinical trials in six months time.

Speaking at the AGM, DRL's managing director K Satish Reddy said that the company has achieved a turnover of Rs 200.88 crore for the first five months period in the current fiscal, registering about 10 per cent growth over the same period of previous year.

Though the company has targeted a 30 per cent growth in the turnover in the current year, Satish Reddy felt that it would be difficult to achieve due to low exports on account of bad Russian markets. According to the latest projections drawn by the company, DRL could achieve at least 15 to 20 per cent growth for the whole year, he added.

At present, the company is not looking for brands acquisition and it has focussed its energies to consolidate the exiting brands, he said.

Further, Satish said that there was no plan for increasing the capacities and proposes to invest in brand development, marketing and research areas.

INSIGHT:

Bonus issue likely for shareholders

Dr Reddy's Laboratories Ltd proposes to consider the issue of bonus shares to its shareholders, according to its chairman K Anji Reddy.

While replying to a demand from a shareholder for an issue of bonus shares at the 15th AGM conducted here on Friday, Reddy said that the company will consider the demand. As on March 30, 1999, DRL has a net worth of Rs 383.88 crore including a paid up equity of Rs 26.48 crore and a reserve of Rs 357.40 crore. The capital include bonus shares of 1,74,87,200 issued earlier.

The announcement of cosidering the bonus issue has surprised the market operators and they are hopeful that the share price will increase despite the low projections in turnover. The company share is quoted at over Rs 1,300 on NSE.