New Delhi: Dr. Reddy’s Laboratories will acquire select divisions of Wockhardt’s branded generics business in India and a few other international territories of Nepal, Sri Lanka, Bhutan and Maldives for a consideration of Rs 1,850 crore.
The two sides have signed a definitive agreement, according to a statement issued on February 12.
The portfolio acquired by Dr Reddy’s comprises of 62 brands in multiple therapy areas such as respiratory, neurology, VMS, dermatology, gastroenterology, pain and vaccines. Besides, it would also take over the 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.
The domestic branded generics business that Dr Reddy’s acquired from Wockhardt had revenues of Rs 594 crore in FY19. For nine months of FY20, the revenues of the acquired business stood at Rs 377 crore.
Domestic formulation business contributed Rs 2,620 crore or 17 percent of Dr Reddy’s Rs 15,385 crore revenues in FY19 registering a growth of 12 percent over previous year.
“India is an important market for us and this acquisition will help in considerably scaling-up our domestic business,” said GV Prasad, the Co-Chairman and Managing Director of Dr. Reddy’s.
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.
The acquisition will help Dr Reddy’s to jump two places to 12th position on rankings of Indian pharmaceutical market by sales, and will eventually help it to break into top-10.
