Dr Reddy's to buy two Dowpharma Small Molecules units in the UK
01 Apr 2008
Hyderabad-based Dr Reddy's Laboratories today signed an agreement with the Dow Chemical Company to buy two plants of the Dowpharma small Molecules business unit in Mirfield and Cambridge in the UK, for anm undisclosed sum.
The transaction is scheduled to close on 30 April 2008 pending regulatory approval.
The acquisition will enable Dr Reddy's to acquire the process technology, intellectual property and trademarks and the facilities at Mirfield and Cambridge. Dr Reddy's plans to retain all employees at the two sites.
"The proprietary chiral and biocatalysis technology at the Cambridge site and the scale up capability in the Mirfield site will add significant value to the company,'' said Satish Reddy, managing director and chief operating officer, Dr Reddy's Laboratories.
''This acquisition will also bring strengths in industrial synthesis of complex prostaglandins and carbohydrate chemistry. These newer capabilities will add to our existing R&D and commercial infrastructure to position Dr. Reddy's as a leading provider of custom pharmaceutical services globally," said Reddy.
This is Dr Reddy's second acquisition since it bought out Roche Holding AG's API plant in Cuernavaca, Mexico, for about about $59 million in 2005. Dr Reddy's says the Dow acquisition would position the company as a leading provider of custom pharmaceutical services business.
Dr.Reddy's will also have a non-exclusive license to Dow's Pfenex expression technology for biocatalysis development.
Established in 1984, Dr Reddy's Laboratories makes pharmaceutical products for diabetes, obesity, cardiovascular diseases, anti-infectives and inflammation. It produces finished dosage forms, active pharmaceutical ingredients and biotechnology products which are marketed globally. The company has a strong presence in India, the US, Europe and Russia.
Dow is a diverified chemical company and has a global presence in pharmaceuticals, fresh water, food, paints, packaging and personal care products and reported annual sales of $53.5 billion in 2007.