Dr Reddy's Laboratories Ltd entered into a definitive agreement with Wockhardt Ltd to acquire select divisions of itsbranded generics business in India and a few other international territories, including Sri Lanka and Maldives for Rs 1850 crores, the drug maker said on Wednesday. The business comprises of a portfolio of 62 brands in multiple therapy areas such as Respiratory, Neurology, VMS, Dermatology, Pain and Vaccines, which would transfer to Dr Reddy's along with related sales and marketing teams and the manufacturing plant located in Baddi, Himachal Pradesh with all plant employees, a release said.
The business undertaking is being transferred on an outrightsale basis. The Co-Chairman and Managing Director of Dr Reddy's, 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."
The transaction is expected to be closed in the first quarter of the financial year 2020-21.