K. Anji Reddy, Founder-Chairman of Dr. Reddy Laboratories (DRL) has announced that the company has entered in final phase of clinical development of Balaglitazone, a new anti-diabetic drug, which is expected to hit the world market by 2011.

The company is also looking to increasing its R&D spending for drug development to $100 million annually.

"I have asked the company CEO, GV Prasad, to provide $100 million more for drug research. It is up to him to decide... But we intend to scale it up gradually,” he added.

“I know it is high risk investment, but to sustain in the research, we need huge investments,” he pointed out.

DRL was established in 1984. It is an emerging global pharmaceutical company with proven research capabilities. The company conducts research in the areas of cancer, diabetes, cardiovascular, inflammation and bacterial infection. It produces finished dosage forms, active pharmaceutical ingredients and biotechnology products and markets them globally.

Reddy said, “We are meeting the FDA soon to get clarity on the issue, and moreover, evidence shows Balaglitazone is better than both Actos and Avandia, which also have side-effects on bones.”

“We are also working on 8 new chemical entities (NCEs) which are at the pre-clinical stage. These are in the therapeutic areas of diabetes, obesity and a special type of inflammation,” he added.

As per the agreement, Rhoescience will retain the rights for Europe and China while, Dr Reddy’s will hold the rights for the rest of the world, which is 60% of the market including the US.

In 2005, Dr Reddy’s had entered into agreement with Denmark-based Rheoscience for the joint development and commercialization of Balaglitazone

In another breakthrough, the DRS 15725, an alternative to the expensive biologic drug Ambro, which is used in the treatment of rheumatoid arthritis, was found to be as effective as the latter in just 50 mg dosage by a European company in its animal trials recently.

Reddy said, “The company is also developing an AMPK (activated protein kinase) activation drug. If successful, it will be both an anti-diabetic and anti-ageing drug.”

The company has also plans to launch the modified version of Red Heart Pill, which is used in the treatment of heart ailments in India, in the next one year.

Reddy said, "We want Red Heart Pill to be a WHO drug and do not intend for a patent."

It stock closed today at Rs. 622.00 on BSE, up by 3.67% from the previous close of Rs. 600.00. The stock touched intraday high of Rs.624.00 and low of Rs. 600.00.