Shares of Dr Reddy's Laboratories gained more than 2 percent intraday Wednesday on acquisition of select portfolio of the established products business of Belgium-based pharma company in India. "Dr Reddy's Labs today has entered into a definitive agreement to acquire a select portfolio of the established products business of UCB, in the territories of India, Nepal, Sri Lanka and Maldives, for Rs 800 crore (euro 118 million)," said the company in its filing to the exchange.
The acquired business is being sold on a slump sale basis, it added. The transaction included approximately 350 employees engaged in operations of the India business. The revenues of the acquired business were approximately Rs 150 crore for the calendar year 2014. The acquisition of UCB's existing brand equity in the areas of dermatology, respiratory and pediatrics diseases will further expand Dr Reddy's therapy footprint into these fast growing areas.
"The acquired UCB portfolio shall accelerate Dr Reddy's presence in the high growth areas of dermatology, respiratory and pediatrics with market leading brands like Atarax, Nootropil, Zyrtec, Xyzal, Zyzal M etc," said Alok Sonig, senior vice president and India business head. The transaction is expected to be closed in the first quarter of the current financial year 2015-16.
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