New Delhi: Drug major Dr Reddy's Laboratories (DRL) on Monday said it will sell its active pharmaceutical ingredient (API) business unit in Hyderabad to generics pharmaceutical company Therapiva Private Ltd.
In a regulatory filing, Dr Reddy's Laboratories said it has entered into a definitive agreement for the sale of its API manufacturing business unit in Jeedimetla, Hyderabad, to Therapiva.
Therapiva is a joint venture between Omnicare Drugs India, a wholly owned subsidiary of Neopharma LLC, Abu Dhabi and Laxai Life Sciences.
The sale includes all related fixed assets (land and building), current assets, current liabilities, and its employees, the company said.
"The divestiture of our API manufacturing business unit is a step towards streamlining our manufacturing operations and optimising our cost structures," said Sanjay Sharma, Executive Vice President & Head, Global Manufacturing Operations of Dr Reddy's Laboratories.
The company however, did not disclose any financial details.
"... 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" said BR Shetty, Chairman of Neopharma LLC, Abu Dhabi.
Following the announcement shares of the company were trading higher by 3.45 percent at Rs 2,537.50 a piece on BSE, in an otherwise muted market.
Updated Date: Oct 15, 2018 12:03:11 IST