Hyderabad: Leading drug maker Dr Reddy’s on Monday said it will sell its API manufacturing unit in Hyderabad to generics pharmaceutical company Therapiva.
The company, in a regulatory filing, said it has entered into a definitive agreement with Therapiva — a joint venture between Omnicare Drugs India and Laxai Life Sciences.
The Hyderabad headquartered firm, in a press release, said that the sale is being done as a going concern and includes all related fixed assets (land and building), current assets, current liabilities, and its employees.
“The divestiture of our API manufacturing business unit is a step towards streamlining its manufacturing operations and optimising the cost structures,” Sanjay Sharma, Executive Vice President and Head, global manufacturing operations, Dr Reddys said.
“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,” he said.
In a statement, Therapiva CEO Vamsi Maddipatla said, “This acquisition represents a unique opportunity to further strengthen Therapiva’s position as a premier supplier of APls. 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.”
“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,” B.R. Shetty, chairman of Neopharma. Neither company however, did not disclose any financial details.
