Dr Reddy’s to acquire BASF’s pharmaceutical manufacturing business

This transaction is subject to customary closing conditions, and is expected to be completed within the first quarter of fiscal year 2008-09. The transaction will be funded using Dr Reddy’s internal cash reserves or other committed credit facilities.

The acquisition will include the relevant business, customer contracts, related ANDAs and NDAs, trademarks, as well as the manufacturing facility and assets at Shreveport, Louisiana. It also includes a tolling and supply agreement. The facility is designed to manufacture solid, semi-solid and liquid dosage forms. It currently employs approximately 150 people and has a proven track record of compliance with regulatory authorities including the FDA.

Mark Hartman, president, North America Generics, Dr Reddy’s Laboratories, said: “This acquisition provides us with an additional platform to further expand our portfolio of prescription generics, OTC capabilities and product portfolio and the ability to supply generic products to US government agencies.”