Mumbai : Dr Reddy’s Laboratories Ltd has signed an agreement with Teva Pharmaceutical Industries Ltd and an affiliate of Allergan Plc to acquire eight abbreviated new drug applications in the US market for $350 mln, the Indian pharmaceutical major said in an exchange filing.
The Hyderabad-based firm will acquire the drug portfolios on a cash-free, debt-free basis and expects to finance the transaction using a combination of cash on hand and available borrowings under existing credit facilities. The to-be-acquired drug portfolios are a part of the business being divested by Teva Pharmaceutical in the process of acquiring Allergan Generics in a $40.5 bln deal.
The company will acquire a portfolio consisting of drug applications awaiting regulatory approval and those which have received approval. The portfolio comprises of complex generic products across diverse dosage forms. The combined sales of branded versions of these products in the US are around $3.5 bln for the 12 months ending April, the company said quoting IMS Health data.
“The transaction will add strength to our product portfolio, help us be more relevant in our US market and also create new opportunities for growth,” Dr Reddy’s Chief Executive Officer G.V. Prasad was quoted as saying in the release.
