Dr Reddy’s acquires Wockhardt’s India formulations
Jumping three spots by becoming the 11th largest pharmaceutical company in the INR 14 lakh crore India market, Dr Reddy’s Laboratories (DRL) has acquired a majority of Wockhardt’s domestic formulations business for Rs 1,850 crore. These 62 products pertain to the therapy areas of respiratory, pain management and anti-infectives, apart from manufacturing facilities in Baddi, Himachal Pradesh, which is a tax-free zone. With this acquisition, DRL will get access to popular brands such as Practin, used for pain management, Zedex, a cough syrup, Brozedex, Tryptomer and Biovac, a vaccine.
What has motivated DRL to diversify its market is the fact that it has been grappling with regulatory actions by the US Food and Drug Administration (FDA).
“This deal shows that DRL is going to build up the company aggressively in non-US markets and in markets like Brazil, India, Russia,” stated Surjit Pal, a pharma analyst at Prabhudas Lilladher.
Numerous private equity firms such as Chrys Capital, KKR and PAG displayed their interest in the Wockhardt sale. “The intended sale of business portfolio is in line with the company’s strategic plan to shift from acute therapeutic areas to more chronic business like anti-diabetes, CNS (central nervous system) etc. and also to its niche antibiotic portfolio of new chemical entities,” explicated Wockhardt chairman Habil Khorakiwala.