GSK, Dr Reddy’s sign agreement for US oral penicillin facility, products

As per the terms of the agreement, GSK will transfer ownership of its penicillin manufacturing site in Bristol, Tennessee, US, and rights for the Augmentin and Amoxil brands in the US to Dr Reddy’s while it will retain the existing rights for these brands outside the US.

Antibiotics and Emerging Markets Supply senior vice president Jean-Paul Reynaud said that the sale of this site and divestiture of these products in the US is a positive step forward for the manufacturing facility.

"This sale will enable the facility to continue to provide oral penicillin-containing antibacterial products to meet the needs of patients in the US, and will allow GSK to focus resources on our newer portfolio of differentiated products," Reynaud said.

Dr Reddy’s Laboratories Global Generics Business president and head Abhijit Mukherjee said that they were excited about this acquisition, as it allows them to enter the US penicillin-containing antibacterial market segment and serve the needs of their customers and patients through manufacturing capabilities that did not previously exist within Dr Reddy’s.

"This acquisition is in line with our strategy to significantly scale up our generics business in North America while providing an opportunity to explore additional synergy with our other businesses," Mukherjee said.