Dr. Reddy’s Laboratories has agreed to divest its its API manufacturing business unit located in Jeedimetla, Hyderabad, located in the Indian state of Telangana, to generics pharmaceutical firm Therapiva Private.
This divestiture is being done by way of slump sale (as a going concern) and includes all related fixed assets (land and building), current assets, current liabilities, and its employees.
Dr. Reddy’s Laboratories global manufacturing operations head and executive vice president Sanjay Sharma said: “The divestiture of our API manufacturing business unit is a step towards streamlining our manufacturing operations and optimizing our cost structures.
“We are confident that we have found in Therapiva, a buyer-partner who fully understands and appreciates the business unit and its people as a powerful strategic asset.”
Therapiva Private Limited is a joint venture between Omnicare Drugs India Private Limited (100% subsidiary of Neopharma LLC, Abu Dhabi) and Laxai Life Sciences Private Ltd.
Therapiva and Laxai Life Sciences CEO Vamsi Maddipatla said: “This acquisition represents a unique opportunity to further strengthen Therapiva’s position as a premier supplier of APIs. There is a strong cultural fit between our companies and we are excited to welcome the employees of Dr. Reddy’s to accelerate our ambitious growth plans.”
Neopharma chairman BR Shetty said: “We are very excited with this acquisition which will augment Neopharma’s vertical integration advantage and provide us with a high quality manufacturing base in India. This is a key milestone in our acquisition strategy over the next few years to increase Neopharma’s presence in the global generics space.”
Dr. Reddy’s Laboratories Ltd. (BSE: 500124, NSE: DRREDDY, NYSE: RDY) is an integrated pharmaceutical company committed to providing affordable and innovative medicines for healthier lives.
Through its three businesses – Pharmaceutical Services & Active Ingredients, Global Generics, and Proprietary Products – Dr. Reddy’s offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars, and differentiated formulations.
Therapiva Private Limited (the Company), based out of Hyderabad, is a joint venture between Omnicare Drugs India Private Limited (100% subsidiary of BR Shetty-owned Neopharma LLC, Abu Dhabi) and Laxai Life Sciences Private Ltd.
Source: Company Press Release