Pharma major Dr Reddy’s Laboratories will acquire certain products of Brussels-based biopharmaceutical company UCB in India, Nepal, Sri Lanka and Maldives for ₹800 crore.
The acquired business is being sold on a slump-sale basis and the transaction is expected to be closed in the first quarter of the current financial year, according to a release.
The revenues of the acquired business stood at around ₹150 crore in calendar 2014, and 350 employees were engaged in the Indian operations.
“The acquired UCB portfolio will accelerate Dr Reddy’s presence in the high growth areas of dermatology, respiratory and paediatrics diseases with market leading brands like Atarax, Nootropil, Zyrtec, Xyzal, Xyzal M, etc,” said Alok Sonig, Senior Vice-President and India Business Head of Dr Reddy’s.
Mark McDade, Chief Operating Officer, UCB, said: “Finding the right company for our established brands in India was crucial and Dr Reddy’s knowledge of the local market, combined with their plans, convinced us they were the right choice to drive this business forward.”
Focus on core products UCB has a solid platform for continuous growth due to its core products. “This position allows us to enhance our focus on our key neurology portfolio in India,” he added.
Dr Reddy’s shares gained 1.65 per cent to close at ₹3,545 on the Bombay Stock Exchange on Wednesday.