Dr. Reddy’s Sells API Manufacturing Business to Therapiva in IndiaBy
Dr. Reddy’s Laboratories has agreed to sell its active pharmaceutical ingredient (API) manufacturing business unit in Hyderabad, India to Therapiva, a Hyderabad, India-based emerging generics pharmaceutical company and Neopharma joint venture company, on a slump-sale basis (i.e., for a lump-sum consideration). The divestiture 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 our manufacturing operations and optimizing our cost structures,” said Dr. Reddy’s Sanjay Sharma, Executive Vice President & Head, Global Manufacturing Operations, in an October 15, 2018 company statement.
Earlier this month (October 2018), Dr. Reddy’s sold its antibiotic manufacturing facility and related assets in Bristol, Tennessee to Neopharma, a pharmaceutical company headquartered in Abu Dhabi, United Arab Emirates. Therapiva is a joint venture between Neopharma’s Abu Dhabi, United Arab Emirates-based business and Laxai Life Sciences.
Dr. Reddy’s sale of its antibiotics manufacturing facility and related assets in Bristol focuses on manufacturing or packaging amoxicillin-based products, including a semi-synthetic penicillin. The 390,000-square-foot facility is dedicated to secondary oral-solid dose penicillin manufacturing/packaging and includes processing, packaging, development, printing, and warehouse spaces. A separate 24,000-square-foot plastics-processing facility in Bristol was also included in the transaction.
“This is a key milestone in our acquisition strategy over the next few years to increase Neopharma’s presence in the global generics space,” said BR Shetty, Chairman of Neopharma LLC, Abu Dhab, in an October 15, 2018 Dr. Reddy’s release.
Source: Dr. Reddy’s Laboratories