Dr. Reddy’s Laboratories, one of the biggest pharmaceutical companies in India, said it has agreed to sell its API manufacturing unit located in Jeedimetla, Hyderabad, to Therapiva Private Ltd, an emerging generics pharmaceutical company.
The company did not reveal the financial details of the deal, but said the transaction is designed as a slump sale of an ongoing concern.
It includes related fixed assets (land and building), current assets, current liabilities, and employees.
“The divestiture of our API manufacturing business unit is a step towards streamlining our manufacturing operations and optimizing our cost structures,” said Sanjay Sharma, Executive Vice President & Head, Global Manufacturing Operations of Dr Reddy’s Laboratories.
Therapiva Private Limited is a joint venture between Omnicare Drugs India Private Limited (a 100% subsidiary of Neopharma LLC, Abu Dhabi) and Laxai Life Sciences Private Ltd.
“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.” said Vamsi Maddipatla, CEO of Therapiva and Laxai Life Sciences.
BR Shetty, Chairman of Neopharma said the move will augment his company’s vertical integration advantage and provide it with a high quality manufacturing base in India.
“This is a key milestone in our acquisition strategy over the next few years to increase Neopharma’s presence in the global generics space,” he added.