Business

DRL buys select generics from Wockhardt for ₹1,850 crore

Deal covers 62 brands, manufacturing plant in Himachal

Pharma major Dr. Reddy’s Laboratories is acquiring select divisions of Wockhardt’s branded generics business in India and a few other international territories of Nepal, Sri Lanka, Bhutan and Maldives for ₹1,850 crore ($260 million).

Besides a portfolio of 62 brands in multiple therapy areas, the transaction involves transfer of Wockhardt’s related sales and marketing teams and manufacturing plant in Baddi, Himachal Pradesh with all employees to Dr. Reddy’s.

The business undertaking is being transferred on a slump-sale basis. The transaction is expected to be closed in the first quarter of 2020-21, Dr. Reddy’s said.

Co-chairman and MD of Dr. Reddy’s G.V. Prasad said India was an important market for the company and the acquisition would help in considerably scaling-up its domestic business. “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. We believe the portfolio holds a lot of potential and will get an impetus under Dr. Reddy’s,” he said.

Wockhardt, whose board of directors approved the sale, said the business being transferred reported a revenue from operation of about ₹377 crore, or about 15%of the consolidated revenue of nine months ended December 2019.

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Printable version | Feb 24, 2020 11:30:58 PM | https://www.thehindu.com/business/drl-buys-select-generics-from-wockhardt-for-1850-crore/article30803610.ece

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