Dr. Reddy’s acquires prescription business of JB Chemicals & Pharmaceuticals in Russia & other CIS markets
Hyderabad, India, July 22, 2011: Dr. Reddy’s Laboratories (NYSE: RDY) announced today that it has entered into an agreement with JB Chemicals & Pharmaceuticals to acquire their pharmaceutical prescription portfolio in the Russia and other CIS regions. The agreement involves acquisition of 20 brands, key ones being Metrogyl and Jocet, for a consideration of USD 34.85 million. Dr. Reddy’s has also entered into a supply agreement with JB Chemicals for the continued manufacturing and supply of these products associated with the acquired brands.
Commenting on the acquisition, Satish Reddy, Managing Director and COO, Dr. Reddy’s said, “Russia is one of our leading markets where we enjoy a strong equity with stakeholders. This acquisition will help expand our prescription, hospital and OTC portfolio, complement our existing strong basket of products and add to our growth aspirations in the Russia & other CIS region.”
Notes to the editor:
- The brands are across key therapeutic areas and will add to our revenues in Russia and CIS markets. Portfolio also includes products in the hospital segment where Dr. Reddy’s has an established presence through a field force and network of distributors in the RCIS Markets. Dr. Reddy’s also gains access to several hospital products in the pipeline, quite a few of which would be first generic to launch.
- Jocet, an important brand in the Rx portfolio gives Dr. Reddy’s a much awaited entry into the $ 256 million cold and cough market. Two brands- Unispaz and Metrogyl gel & Metrogyl vaginal gel further strengthens Dr. Reddy’s portfolio.
About Dr. Reddy’s Russia operations
- Dr. Reddy’s is the largest Indian Pharmaceutical company in Russia and also the fastest growing international branded generic company by volume.
- Dr. Reddy’s entered the Russia market in 1992 and consolidated its position during the turbulent currency crisis of the late 1990s.
- Omez®, Nise®, Ketorol® & Ciprolet® are our top four brands in the Russian market and are ranked No. 1 in their respective INN / molecular segments.
- FY11 revenues from Russia & other CIS markets were at Rs.10.9 bn ($244 mn) representing a growth of 19%.
This press release includes forward-looking statements, as defined in the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations and projections about future events. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such factors include, but are not limited to, changes in local and global economic conditions, our ability to successfully implement our strategy, the market acceptance of and demand for our products, our growth and expansion, technological change and our exposure to market risks. By their nature, these expectations and projections are only estimates and could be materially different from actual results in the future.
About Dr. Reddy’s
Dr. Reddy’s Laboratories Ltd. (NYSE: RDY) is an integrated global pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives. Through its three businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products – Dr. Reddy’s offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars, differentiated formulations and NCEs. Therapeutic focus is on gastro-intestinal, cardiovascular, diabetology, oncology, pain management, anti-infective and pediatrics. Major markets include India, USA, Russia and CIS, Germany, UK, Venezuela, S. Africa, Romania, and New Zealand. For more information, log on to: www.drreddys.com
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