Dr Reddy's acquires BASF's contract manufacturing business in US

30 April 2008

Mumbai: Global pharmaceutical company Dr Reddy's Laboratories has entered into an agreement to acquire BASF's pharmaceutical contract manufacturing business and related facility in Shreveport, Louisiana, US.

The business involves the contract manufacturing of generic prescription and over-the-counter products for branded and generic companies in the US, Dr Reddy's said in a release without disclosing financial terms and conditions of the transaction.

The acquisition will include the relevant business, customer contracts, related ANDAs and NDAs, trademarks, as well as the manufacturing facility and assets of BASF at Shreveport. It also includes a tolling and supply .agreement. The facility is designed to manufacture solid, semi-solid and liquid dosage forms, Dr Reddy's said.

The company plans to fund the acquisition through internal cash reserves or other committed credit facilities.

The BASF facility currently employs approximately 150 people and has a proven track record of compliance with regulatory authorities including the USFDA.The unit had revenues of $43 million for the year ended 31 December 2007, according to the release.

"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," said Satish Reddy, managing director and chief operating officer, Dr Reddy's Laboratories.