Dr Reddy’s Laboratories (DRL) has entered into an agreement with Wockhardt to acquire a majority of Wockhardt’s domestic formulations business for Rs 1,850 crore.
With this buyout, DRL is set to become the 11th largest pharmaceutical company in the Rs 14 lakh crore India market, up from 14.
As per the acquisition deal, a portfolio of 62 brands in multiple therapy areas such as respiratory, neurology, VMS, dermatology, gastroenterology, pain and vaccines would be transferred to DRL along with manufacturing facilities in Baddi, Himachal Pradesh.
Responding to the development, G V Prasad, co-chairman and managing director of DRL, was quoted as saying, “India is an important market for us, and this acquisition will help in considerably scaling-up our domestic business. The acquired portfolio shall enhance DRL’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 DRL.”
“The intended sale of business portfolio is in line with the company’s strategic plan to shift from acute therapeutic areas to more chronic business like anti-diabetes, CNS (central nervous system) etc. and also to its niche antibiotic portfolio of new chemical entities,” Wockhardt chairman Habil Khorakiwala said.