The drugs Dr Reddy’s is acquiring are being sold by Teva to secure US antitrust clearance for its $40.5bn acquisition of Allergan’s generic drugs portfolio.
The agreement includes generic drugs awaiting US approval, and some that are available in the market, including complex generic products across different dosage forms, Dr Reddy’s said.
The branded versions of drugs under the deal generated sales of about $3.5bn in the US for the year to April 2016, the company said, citing healthcare research company IMS Health.
Dr. Reddy’s Laboratories co-chairman and CEO G.V. Prasad said: "This transaction will add strength to our product portfolio, help us be more relevant in our U.S. market and also create new opportunities for growth."
Dr Reddy’s plans to finance the deal with cash on hand and available borrowings under existing credit facilities.
The acquisition is subject to closing of the Teva-Allergan agreement and approval of the US Federal Trade Commission.
Dr. Reddy’s provides a portfolio of products and services including active pharmaceutical ingredients, custom pharmaceutical services, generics, biosimilars and differentiated formulations.
The company recently acquired a portfolio of over-the-counter brands in the cough-and-cold, pain, and dermatology categories.
Image: Dr. Reddy’s Laboratories co-chairman and CEO G.V. Prasad. Photo: courtesy of Dr. Reddy’s Laboratories Ltd.