Dr. Reddy’s to buy 8 products from Teva for $350 million1 min read . Updated: 11 Jun 2016, 01:11 PM IST
Dr. Reddy's said it will buy the portfolio on a cash free, debt free basis and expects to finance the transaction using a combination of cash on hand and available borrowings under existing credit facilities
Mumbai: Dr. Reddy’s Laboratories Ltd, India’s second-largest drug maker, on Saturday said that it will acquire a portfolio of eight abbreviated new drug applications (ANDA) in the US from Teva Pharmaceutical Industries Ltd and an affiliate of Allergan plc for $350 million.
The company said it will buy this portfolio on a cash free, debt free basis and expects to finance the transaction using a combination of cash on hand and available borrowings under existing credit facilities.
“This transaction will add strength to our product portfolio, help us be more relevant in our US market and also create new opportunities for growth", said G. V. Prasad co-chairman and chief executive officer of the company.
The acquired portfolio includes products that divested by Teva as a precondition to its closing of the acquisition of Allergan’s generics business, subject to final approval by the US federal trade commission, the company said in a notice to BSE.
The product includes a mix of filed ANDAs pending approval and an approved ANDA and comprised of complex generic products across diverse dosage forms.
“Dr Reddy’s has a strong track record in the US market with over 79 filed ANDAs pending approval of which we believe 18 have first to file status. The acquisition of theses attractive ANDAs from Teva will enhance our short to midterm aspirations and is consistent with our growth initiatives to identify inorganic opportunities to expand our base business", Alok Sonig executive vice president and head of north America said.
According to IMS Health data, the annual US sales for above products are approximately $3.5 billion.
On Friday, Dr Reddy’s ended at ₹ 3064.60 on BSE, down 0.22% from previous close while India’s benchmark Sensex Index fell 0.48% to close at 26635.75 points.