Release issued 27th September 2007

27 September 2007, Godalming, UK: Sinclair Pharma plc ("Sinclair", SPH:L), the specialty pharmaceutical company, announces that it has licensed the exclusive US rights of its seborrheic dermatitis product, Sebclair to Dr Reddy's Laboratories, Inc., a subsidiary of Dr. Reddy's Laboratories Limited (NYSE:RDY). Dr. Reddy's will market the product under a new brand name through its new dermatology division.

The agreement grants Dr Reddy's exclusivity in the US, for Sebclair and associated line extensions for the life of Sebclair's patent protection. Under the agreement Sinclair will receive certain milestone payments over the agreement period. Upon commercialisation of the product, Sinclair will receive royalty payments based on net sales.

Dr Reddy's is focused on building a presence in dermatology in the US, a sector worth an estimated $5bni. Sebclair will be a key component in Dr Reddy's future dermatology product portfolio. Dr Reddy's expects to launch Sebclair within a year through a new salesforce targeting dermatologists.

Dr Michael Flynn, CEO of Sinclair Pharma, said: "This exciting new deal for Sinclair means that Sebclair is now entering the start of its commercial life. Dr Reddy's has a strong global presence and we believe that Sebclair represents an opportunity to support their ambitions for the US dermatology sector."

Jeffery Wasserstein, Executive Vice President of Dr Reddy's Laboratories added "We are very pleased to be partnering with Sinclair at our entry into the US dermatology market."

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