Dr.Reddy’s Laboratories Ltd on Wednesday announced that it has completed the acquisition of select divisions of Wockhardt Limiteds branded generics business in India and a few other international territories of Nepal, Sri Lanka, Bhutan and Maldives.
The business comprises a portfolio of 62 brands in multiple therapy areas such as Respiratory, Neurology, VMS, Dermatology, Gastroenterology, Pain and Vaccines, which would transfer to Dr Reddys along with related sales and marketing teams and a manufacturing plant located in Baddi, Himachal Pradesh with all plant employees, a press release from the drug maker said.
On February 12, 2020, Dr.Reddys signed a Business Transfer Agreement(BTA) with Wockhardt to acquire the above- referred business undertaking for an upfront consideration of Rs 1,850 crore.
In view of the COVID-19 pandemic and the consequent government restrictions, there has been a reduction in the revenue from the sales of the products forming part of the Business Undertaking during March and April 2020, it said.
Subsequently, through an amendment to the BTA, Dr.Reddys and Wockhardt that 1,483 crore would be paid on the date of closing the deal consideration, and the rest would be through different ways, the release said.
G V Prasad, Co-Chairman and Managing Director of Dr. Reddys said this deal is in line with the company’s strategic focus on India and has paved a path for accelerated growth and leadership in the domestic market.
“We believe that the acquired portfolio offers good growth potential for us. We welcome the employees joining us from Wockhardt to the family of Dr.Reddys,” Prasad said.
Source: Economic Times