Biznextindia: Pharmaceuticals major Dr. Reddy’s Laboratories Ltd. has entered into a definitive agreement with Wockhardt Limited to acquire select divisions of its branded generics business in India and a few other international territories of Nepal, Sri Lanka, Bhutan and Maldives for a consideration of Rs.1850 Crores. The Wockhardt board has already approved the proposal.
The business being acquired by Dr.Reddy’s has reported revenue from operation Rs. 377 crore which is 15% of the consolidated revenue for 9 months ended 31st December 2019. The proposed divestment is 3.8 times of annualized revenue of the business being transferred. This transaction is expected to be completed in May 2020.
The business comprises of a portfolio of 62 brands in multiple therapy areas such as Respiratory, Neurology, VMS, Dermatology, Gastroenterology, 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. The business undertaking is being transferred on a slump sale basis.
“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” G V Prasad, the Co-Chairman and Managing Director of Dr. Reddy’s said.