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Dr Reddy's to buy Roche unit
By agencies
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Tuesday, 08 November 2005, 20:30 IST
HYDERABAD: One of IndiaÂ’s largest drug makers Hyderabad based Dr. Reddy's Laboratories Ltd. today said it will acquire Roche's active pharmaceutical ingredients business in Mexico for a total of $59 million.
It said the acquisition included all 340 employees at the site in Cuernavaca and all its business supply contracts.
This business involves the manufacture and sale of APIs including intermediates to Roche and other Innovator Companies. The product portfolio currently comprises about 18 products including mature APIs and a range of intermediates and steroids. This acquisition also adds unique steroids manufacturing capabilities to Dr. Reddy's. The Cuernavaca site at Mexico currently employs nearly 340 people and has been inspected by the U.S. FDA and other international regulatory agencies.
Commenting on the acquisition, GV Prasad, CEO, Dr. Reddy's Laboratories, said, "With the acquisition of Roche's API business at the Mexico site, Dr. Reddy's will emerge as a leading player in Custom Pharmaceutical Services (CPS) business and position itself as a partner of choice for innovator companies across the globe with service offerings spanning the entire value chain of pharmaceutical services.."
The acquisition is expected to be completed by end of December 2005. The Company expects the acquisition to be EPS accretive to Dr. Reddy's and the full year financial impact of the acquisition will be realized from the year 2006-07 onwards.