Dr Reddy's Lab, Cipla sign pact

New Delhi: Drug majors Dr Reddy's Laboratories and Cipla on Wednesday said they have entered into a partnership agreement with ABCD Technologies LLP, which is to be renamed as IndoHealth Services LLP.

The two firms are contributing up to Rs 40 crore each corresponding to the contribution by the other partners in the target entity which is a newly incorporated limited liability partnership (LLP) and has not commenced any business activities, they said in regulatory filings.

The proposed business of the target entity will be carried out with an objective to facilitate the digitisation of the healthcare infrastructure in India towards enhancement of good distribution practices in support of the National Digital Health Mission of the government, they added.

While Cipla said the nature of consideration is cash infusion as capital contribution towards partnership, Dr Reddy's said the nature of consideration is cash infusion as capital contribution and/or loan. Contributionof up to Rs 40 crore is for up to 20 per cent share of profit/ loss in the target entity, the firms said.