Dr. Reddy's Laboratories on Wednesday said it has entered into an agreement with Wockhardt 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 Rs 1850 crore. The transaction is expected to be closed in the first quarter of the financial year 2020-21.
"The deal comprises a portfolio of 62 brands in multiple therapy areas such as Respiratory, Neurology, VMS, Dermatology, Gastroenterology, Pain and Vaccines," Dr. Reddy's Laboratories said in a filing to the Bombay Stock Exchange.
As part of the agreement, Mumbai-headquartered Wockhardt will transfer these generic business 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," it said in the exchange filing.
Commenting on the development, G V Prasad, the Co-Chairman and Managing Director of Dr. Reddy's 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," Prasad added.
Following the announcement, shares of Dr. Reddy's were trading 0.19 per cent higher at Rs 3,197 apiece on the BSE against previous closing price of Rs 3,190.80. The stock touched an intraday high of Rs 3212.75 after opening marginally lower at Rs 3,181.60.
By Chitranjan Kumar