Shares of Dr. Reddy’s Laboratories climbed about 4 percent in share market on October 15, 2018, trade after the organization went into a definitive agreement for the sale of its API producing specialty unit situated in Jeedimetla, Hyderabad. The divestiture by a method for slump sale incorporates all related settled resources, current resources, current liabilities, and its employees.
The drug producer sold the unit to Therapiva in a droop deal that incorporated unit’s settled resources (land and building), current resources, current liabilities, and its workers, the organization said in an administrative recording. It didn’t reveal the arrangement sum.
“In share market, the divestiture of our API manufacturing business unit is a step towards streamlining our manufacturing operations and optimizing our cost structures,” Sanjay Sharma, the organization’s official vice-president and head of Global Manufacturing Operations, said. “We are confident that we have found in Therapiva, a buyer-partner who fully understands and appreciates the business unit and its people as a powerful strategic asset.”
Therapiva is a joint venture between Omnicare Drugs India Pvt Ltd (100 percent auxiliary of Neopharma LLC, Abu Dhabi) and Laxai Life Sciences Private Ltd.
Following the announcement, the stock rose 3.85 percent to hit a high of Rs 2,544.75 on BSE.
“We are very excited with this acquisition which will augment Neopharma’s vertical integration advantage and provide us 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,” BR Shetty, chairman of Neopharma LLC, Abu Dhabi stated to Business Standard.
Vamsi Maddipatla, CEO of Therapiva and Laxai Life Sciences said in share market report to Economic Times, “This acquisition represents a unique opportunity to further strengthen Therapiva’s position as a premier supplier of APIs. 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.”[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]