GSK inching closer to deal with Dr Reddy's?
08 Jan 2010
Citing people familiar with the matter, Reuters reported that Glaxo will take a 20-per cent stake in Dr. Reddy's Holdings Ltd., a family vehicle that owns 23.2 per cent of the Hyderabad-based Dr Reddy's Laboratories.
The report said that though nothing had been finalised, if a deal does materialise, it would give the UK-based Glaxo, the world's second largest pharmaceutical company, an approximately 5-per cent stake valued at $165 million, in India's second largest pharma company.
Earlier in September 2009, Dr Reddy's refuted media and market talk about a possible deal with a global pharma major, saying the promoters had no plans to sell their stake in the company, in response to reports about possible buyers for the founders' stake of about 23 per cent. (See: Reddy's scotches stake sale rumours)
GlaxoSmithKline PLC, Pfizer Inc, Merck & Co Inc, and Sanofi-Aventis had been speculated as being among the potential acquirer.
Earlier in June, GlaxoSmithKline signed a revenue-sharing agreement with Dr Reddy's to boost its business in emerging markets, that involved jointly developing and marketing generics and differentiated formulations products. the deal would give Glaxo access to Dr Reddy's portfolio and future pipeline of more than 100 branded pharmaceuticals. (See: Glaxo ties up with Dr Reddy's for emerging markets)
The Reuters article also opined that a deal between Dr. Reddy's, and Glaxo could spark a fresh wave of acquisitions by overseas firms folowing the acquisition of India's largest pharma company, Ranbaxy Laboratories Ltd. by Japan's Daiichi Sankyo Co. last year.
Established in 1984, Dr Reddy's Laboratories is a fully integrated emerging global pharmaceutical company. The company markets its products globally, with a focus on India, the US, Europe and Russia.
