Dr Reddy's to acquire Wockhardt divisions

Deal sees 62 brands in multiple therapy areas and a manufacturing plant transfer to the company

The business comprises a portfolio of 62 brands in multiple therapy areas such as respiratory, neurology, VMS, dermatology, gastroenterology, pain and vaccines, which would transfer to Dr Reddy’s along with related sales and marketing teams and a manufacturing plant located in Baddi, Himachal Pradesh with all plant employees.

The deal is expected to close in the first quarter of the financial year 2020-21.

“India is an important market for us and this acquisition will help in considerably scaling-up our domestic business," said G.V. Prasad, Co-Chairman and Managing Director of Dr Reddy’s. "The acquired portfolio shall enhance Dr Reddy’s presence in the high growth therapy areas with market-leading brands such as Practin, Zedex, Bro-zedex, Tryptomer and Biovac. We believe the portfolio holds a lot of potential and will get an impetus under Dr Reddy’s.”

Commenting on the transaction, Dr Habil Khorakiwala, Founder Chairman, Wockhardt Group, said: “The intended sale of Business portfolio is in line with the company’s strategic plan to shift from acute therapeutic areas to more chronic business such as anti-diabetes, CNS and to its niche antibiotic portfolio of NCEs. The divestment will also ensure adequate liquidity to bring in robust growth in the chronic domestic branded business, international operations, investments in biosimilars for the US market apart from the company’s global clinical trials of break-through anti-Infectives (NCEs approved under coveted QIDP1 program of US FDA) and R&D activities.“