One of India’s leading drugmaker companies, Dr Reddy’s Laboratories has announced entering into a definitive agreement to acquire Belgium based pharmaceutical firm UCB for a selected portfolio
Renowned Indian drugmaker, Dr Reddy's Laboratories, has agreed to enter into a definitive agreement with Belgium based pharmaceutical firm UCB in India to acquire a select portfolio for Rs 800 crore.
Reportedly, in a recent statement released by Dr Reddy said the acquisition is on a slump sale basis and the established products business of UCB would cover the territories of India and neighbouring countries like Nepal, Sri Lanka and Maldives.
The brand has also made it vocal that the transaction includes about 350 employees engaged in operations of UCB's India business and the revenue of the acquired business was approx Rs 150 crore for calendar year 2014.
Significantly, the Indian drugmaker said the acquisition of UCB's existing brand equity in the areas of dermatology, respiratory and paediatrics diseases will further expand Dr Reddy's therapy footprint into these fast growing areas. The transaction is expected to be closed in the first quarter of the financial year 2015-16.
"The acquired UCB portfolio shall accelerate Dr Reddy's presence in the high growth areas of dermatology, respiratory and paediatrics with market leading brands like Atarax, Nootropil, Zyrtec, Xyzal, Xyzal M etc," said Alok Sonig, Senior Vice President and India Business Head.
Meanwhile, Mark McDade, Chief Operating Officer (COO), UCB said, "Finding the right company for our established brands in India was crucial, and Dr. Reddy's knowledge of the local market, combined with their ambitious plans and excellent reputation, convinced us they were the right choice to drive this business forward."
McDade Further added, "This position allows us to enhance our focus on our key neurology portfolio in India, providing innovative solutions to patients living with severe diseases."
Listed on Euronext Brussels, UCB has operations in almost 40 countries across the globe with revenues of 3.3 billion Euros in 2014.