Under the terms of the agreement, Dr. Reddy’s sold all the issued and outstanding membership interests in Dr. Reddy’s Laboratories Tennessee, LLC and certain related assets.
Dr. Reddy’s COO Erez Israeli said: “This sale is in line with our stated priority to streamline and optimize our global cost structures and help us focus on other business priorities to drive growth.
“We are pleased that the agreement may provide continued employment opportunities for many of the experienced employees at the site.”
Neopharma COO Suresh Nandiraju said: “This acquisition is synergetic and will strengthen our product portfolio for driving long-term, sustainable growth by leveraging our global presence.”
The plant and associated facilities focus on manufacturing or packaging amoxicillin-based products, which include a semi-synthetic penicillin.
The 390,000-square-foot facility is dedicated to secondary oral-solid dose penicillin manufacturing/packaging and includes processing, packaging, development, printing, and warehouse spaces. A separate 24,000-square-foot plastics-processing facility in Bristol is also included in the transaction.
Source: Company Press Release.