Mumbai: Pharmaceutical firm Dr. Reddy’s Laboratories Ltd on Tuesday said it will acquire a part of US-based The Dow Chemical Company’s small molecules business for an undisclosed amount.
The company has entered into a definitive agreement with the Dow Chemical Company to acquire the small molecule business of Dowpharma, a business unit of the US firm, Dr. Reddy’s said in a filing to the BSE.
The financial terms and conditions of the transaction are not being disclosed at this point of time, the filing said, adding that the transaction is scheduled to close on 30 April, pending regulatory approval.
The small molecules business is associated with Dow Chemical Company’s United Kingdom sites in Mirfield and Cambridge. The two sites and the business employ around 80 people.
“The proprietary chiral and biocatalysis technology at the Cambridge site and the scale up capability in the Mirfield site would add significant value to the company,” Dr Reddy’s Laboratories managing director and chief operating officer Satish Reddy said.
The acquisition would include relevant business, customer contracts, associated products, process technology, intellectual property, trademarks as well as the transfer of the facilities at Mirfield and Cambridge in the United Kingdom.
“This acquisition would also bring strengths in industrial synthesis of complex prostaglandins and carbohydrate chemistry. These newer capabilities will add to our existing R&D and commercial infrastructure to position Dr Reddy’s as a leading provider of custom pharmaceutical services globally,” Reddy added.
Dr Reddy’s would also have a non-exclusive license to Dow’s Pfenex Expression Technology for biocatalysis development.
Shares of the company were trading at Rs598, up 1.19% on the BSE in morning trade.