Hyderabad, Apr 30 (UNI) Dr Reddy's Laboratories today announced that it has signed a definitive agreement to acquire BASF's pharmaceutical contract manufacturing business and related facility in Shreveport, Louisiana, USA.
The transaction, subject to customary closing conditions, is expected to be completed within the first quarter of fiscal year 2008-09. The transaction will be funded through Dr Reddy's internal cash reserves or other committed credit facilities, a release here said.
This business involves contract manufacturing of generic prescription and over-the-counter products for branded and generic companies in the US. It recorded revenues of USD 43 million for the year ended December 31, 2007.
The acquisition will include the relevant business, customer contracts, related ANDAs and NDAs, trademarks, manufacturing facility and assets at Shreveport, Louisiana and a tolling and supply agreement. The facility is designed to manufacture solid, semi-solid and liquid dosage forms, it added.
Dr Reddy's Laboratories Managing Director&Chief Operating Officer Satish Reddy said, ''Dr Reddy's is committed to building a leading Global Generics business over the next few years. The acquisition of BASF's finished dosage manufacturing facility in the US will enable us to strengthen our supply chain for North America and provide a strong platform for pursuing additional growth opportunities." Dr Reddy's Laboratories North America Generics President Mark Hartman said, ''We are excited about this acquisition as this facility provides us with a profitable revenue base built on strong customer relationships with branded and generic companies.'' ''We are pleased with Dr Reddy's decision to acquire BASF's contract manufacturing business and facility at Shreveport, Louisiana and are encouraged by Dr Reddy's growth-oriented view of the business,'' BASF's Pharma Ingredients and Services global business unit Head Martin Widmann said.
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