Dr Reddy's to buy back shares from ICICI Ventures, CitiGroup

Hyderabad, July 21 (UNI) The Board of Directors of the Dr Reddy's Laboratories Ltd today approved buyback of shares from institutional investors ICICI Ventures and CitiGroup Ventures from its de-merged arm ''Pelican.'' Announcing this at a press conference to announce Q1 results, Managing Director and Chief Operating Officer Satish Reddy and Vice-Chairman and Chief Executive Officer G V Prasad said ICCI Ventures and CitiGroup Ventures, which together invested 22.5 million US Dollar in ''Pelican,'' would be paid nine million USD each.

Pointing out 90 per cent of molecules failed in clinical trials, they said it took over ten years for development of a drug.

''We have enough cash in the books to buy back the shares from the institutional investors,'' they added.

Mr Reddy said the decision of the USFDA, the drug regulator in US, to set up its offices in China and India would increase scrutiny.

''We are open to it,'' said Mr Reddy, whose company's business in the North America accounted for over 60 per cent of the growth during Q1.

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