Dr Reddy's denies pact with French firm

Our Bureau

Hyderabad, Dec 1: Dr Reddy's Laboratories (DRL) on Tuesday communicated to Hyderabad Stock Exchange (HSE) that it has not renewed the distributor agreement with French diagnostics major BioMeriux SA. DRL assistant company secretary Santosh Kumar Nair has stated in a reply to the notice served by HSE under clause 36 of the listing agreement, that the sales tie-up with BioMeriux was just an ordinary course of business for a period of two years. The agreement was valid till the end of 1997 and was not renewed afterwards, he added.

Nair said that, considering the insignificant contribution by the diagnostic division to the overall turnover of the company, DRL had not reported the lapse of the agreement to HSE, the company had not informed about it to any other stock exchange. He claimed that the company's decision not to continue with the distributorship will not make any material difference in terms of consideration nor it is sensitive to the DRL business operations.

According to him, the division hadcontributed just 3 per cent of the total turnover, while the operations from BioMeriux SA accounts for about 0.5 per cent of the said 3 per cent.

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