Dr. Reddy’s will acquire the Wockhardt’s business divisions located in India, and few other territories of Nepal, Sri Lanka, Bhutan and Maldives
Indian pharmaceutical firm Dr. Reddy’s Laboratories has agreed to acquire certain branded generics business divisions of Wockhardt for INR18.50bn ($260m).
The company will acquire the Wockhardt’s business divisions located in India, and few other territories of Nepal, Sri Lanka, Bhutan and Maldives, and the business undertaking is expected to be transferred on a slump sale basis.
Dr. Reddy’s the co-chairman and managing director G V Prasad said: “India is an important market for us and this acquisition will help in considerably scaling-up our domestic business.
“The acquired portfolio shall enhance Dr. Reddy’s presence in the high growth therapy areas with market-leading brands such as Practin, Zedex, Bro-zedex, Tryptomer and Biovac.
“We believe the portfolio holds a lot of potential and will get an impetus under Dr. Reddy’s. We welcome the team joining as part of the deal to the Dr. Reddy’s family.”
Under the agreement, Dr. Reddy’s will acquire Wockhardt’s portfolio of 62 brands in multiple therapy areas including respiratory, neurology, VMS, dermatology, gastroenterology, pain and vaccines.
In addition, certain sales and marketing teams and the manufacturing plant located in Baddi, Himachal Pradesh will also be acquired, along with all of its employees.
Wockhardt has 8,600 employees, three research centres and 12 manufacturing plants
Wockhardt is a pharmaceutical and biotechnology company that offers affordable medicines and services ranging from the manufacture and marketing of pharmaceutical and bio-pharmaceutical formulations, active pharmaceutical ingredients (APIs) and vaccines.
The firm operates in the fields of pharmaceuticals, biotechnology and a chain of advanced super speciality hospitals with a workforce of 8,600 employees from 21 different countries across the world.
Wockhardt Group founder-chairman Habil Khorakiwala said: “The intended sale of business portfolio is in line with the company’s strategic plan to shift from acute therapeutic areas to more chronic business like anti-diabetes, CNS etc. and also to its niche antibiotic portfolio of NCEs.
“The divestment will also ensure adequate liquidity to bring in robust growth in the chronic domestic branded business, international operations, investments in Biosimilars for the US market apart from the company’s global clinical trials of Break-through Anti-Infectives (NCEs approved under coveted QIDP program of United States Food & Drug Administration) and R&D activities.”