Dr Reddy’s acquires BASF’s pharmaceutical contract manufacturing business
Dated: 5/9/2008
Dr Reddy’s Laboratories announced it has signed a definitive agreement to acquire BASF’s pharmaceutical contract manufacturing business and related facility in Shreveport, Louisiana, US.
This transaction is subject to customary closing conditions, and is expected to be completed within the first quarter of fiscal year 2008-09.
The transaction will be funded using Dr Reddy’s internal cash reserves or other committed credit facilities.
Further financial terms and conditions of the transaction will not be disclosed.
This business involves the contract manufacturing of generic prescription and over-the-counter products for branded and generic companies in the US.
It recorded revenues of $43 million for the year ended December 31, 2007.
The acquisition will include the relevant business, customer contracts, related ANDAs and NDAs, trademarks, as well as the manufacturing facility and assets at Shreveport, Louisiana.
It also includes a tolling and supply agreement. The facility is designed to manufacture solid, semi-solid and liquid dosage forms.
It currently employs approximately150 people and has a proven track record of compliance with regulatory authorities including the USFDA.
