Merck & Co Inc. granted the Indian drug manufacturer Dr. Reddy’s Laboratories exclusive rights to market generic versions of two Merck drugs - Zocor ( Simvastatin ) and Proscar ( Finasteride ). This allows the Indian company to sell the drugs as authorized generics once they go off-patent. The upcoming expiration of Merck’s Zocor patent had severe consequences for the company - a forced reconstruction took place and 7000 people lost their jobs, Merck’s stocks declined 11 cents.

For Dr. Reddy’s this is a historical success, this is the first Indian drug company to launch authorized generics. This deal allows Dr. Reddy’s to have a 180-day market exclusivity for their generic version.