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Dr Reddy’s to acquire Wockhardt’s divisions
Posted on Thursday, 13 February 2020 09:14
Dr Reddy’s Laboratories has agreed to snap up select divisions of Wockhardt’s branded generics business for INR 18.50 billion (USD 259.46 million).

The acquisition, which is being transferred on a slump sale basis, includes units in India, Sri Lanka, Nepal, Bhutan and the Maldives.

Wockhardt’s generics business houses 62 brands in multiple therapy areas, namely respiratory, neurology, gastroenterology and dermatology.

Following closing, the divisions, along with related sales and marketing teams, will transfer over to Dr Reddy’s.

The buyer will also pick up Wockhardt’s manufacturing plant based in Himachi Pradesh.

Completion is slated for the first quarter of the financial year ending 31st March 2021.

G V Prasad, managing director of the purchaser, 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.”

Headquartered in Mumbai, Wockhardt is a global pharmaceutical and biotechnology company.

It has 8,600 employees and three research centres, as well as 12 manufacturing sites in India, the UK, Ireland and the US.

During the nine months ended 31st December 2019, the company posted revenue of INR 11,356 billion, down 33.4 per cent from INR 17,051 billion in the corresponding period of 2018.

Located in Hyderabad, Dr Reddy’s makes and markets a range of pharmaceuticals for patients and healthcare professionals in India and internationally.

Its offerings include tablets and injectables, as well as products in major therapeutic areas such as cardiovascular disease and oncology.

According to Zephyr, the M&A database published by Bureau van Dijk, there were 2,188 deals targeting pharmaceutical preparation manufacturers announced globally in 2019.

In the most valuable of these by far, Bristol-Myers Squibb acquired US-based Celgene for USD 74.00 billion.

Other companies targeted in this sector include Allergan, Mylan and AstraZeneca.

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