MUMBAI: Pharma Major, Dr. Reddy's Laboratories Ltd on Monday announced that it has entered into a definitive agreement for the sale of its API manufacturing business unit located in Jeedimetla, Hyderabad, to Therapiva Private Ltd, an emerging generics pharmaceutical company.
This divestiture is being done by way of slump sale (as a going concern) and includes all related fixed assets (land and building), current assets, current liabilities, and its employees.
''The divestiture of our API manufacturing business unit is a step towards streamlining our manufacturing operations and optimizing our cost structures," said Sanjay Sharma, Executive Vice President & Head, Global Manufacturing Operations.
"We are confident that we have found in Therapiva, a buyer-partner who fully understands and appreciates the business unit and its people as a powerful strategic asset. Therapiva Private Limited is a joint venture between Omnicare Drugs India Private Limited (100 pc subsidiary of Neopharma LLC, Abu Dhabi) and Laxai Life Sciences Private Ltd.
This acquisition represents a unique opportunity to further strengthen Therapiva's position as a premier supplier of APls. There is a strong cultural fit between our companies and we are excited to welcome the employees of Dr. Reddy's to accelerate our ambitious growth plans,'' said Vamsi Maddipatla, CEO of Therapiva and Laxai Life Sciences.
''We are very excited with this acquisition which will augment Neopharma's vertical integration advantage and provide us with a high quality manufacturing base in India.
This is a key milestone in our acquisition strategy over the next few years to increase Neopharma's presence in the global generics space'' said BR Shetty, Chairman of Neopharma LLC, Abu Dhabi.