The Hyderabad based, Natco Pharma, on Wednesday, announced that it has signed up a deal with pharmaceutical major Dr Reddy's Laboratories.

Under the deal, both the firms will develop, manufacture and sell generic cancer products jointly.

However, the financial details of the deal are not yet known.

Mr. Rajeev Nannapaneni, COO, Natco Pharma stated, “We are delighted to be working with Dr Reddy's, which has strong reputation and proven track record in the global pharmaceutical industry. We look forward to a mutually beneficial strategic collaboration.”

In a statement, Natco said that Dr Reddy’s will pay an undisclosed amount as upfront in order to secure the rights to sell the products and for capacities to manufacture drugs.

The statement also said that the companies also have a profit-sharing agreement in place.

The products to be made under this strategic partnership include currently selling oral and injectable products, including paclitaxel, which have multi-million dollar sales all through the world.

Paclitaxel is a generic version of Abraxis Bioscience's breast cancer drug Abraxane.

Natco will exclusively supply the products to Dr Reddy's, which will sell them throughout the world.

The deal could be extended to comprise more products, Natco added.

The shares of Natco Pharma, on Wednesday (April 15), closed at Rs 73.40, up 12.1%, on the Bombay Stock Exchange (BSE). The total volume of shares traded stood at 74.715. The share price has seen a 52-week high of Rs 105 and a low of Rs 38 on BSE.