Hyderabad, India, November 23, 2010: GlaxoSmithKline plc (GSK) and Dr. Reddy’s Laboratories (NYSE:RDY) today announced that the companies have signed an agreement relating to GSK’s United States oral penicillin facility and product portfolio. Under the agreement, GSK will transfer ownership of its penicillin manufacturing site in Bristol, Tennessee, United States, and rights for the Augmentin® and Amoxil® brands in the United States to Dr. Reddy’s. GSK will retain the existing rights for these brands outside the United States.
This transaction is targeted to close within the first half of the calendar year 2011. Further financial terms and conditions of the agreement have not been disclosed.
Abhijit Mukherjee, President– Global Generics Business, Dr. Reddy's Laboratories, said, “We are excited about this acquisition, as it allows us to enter the United States penicillin-containing antibacterial market segment and serve the needs of our customers & 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.”
“The sale of this site and divestiture of these products in the United States are a positive step forward for this manufacturing facility. The Bristol site has had a long and successful history with GSK. This sale will enable the facility to continue to provide oral penicillin-containing antibacterial products to meet the needs of patients in the United States, and will allow GSK to focus resources on our newer portfolio of differentiated products,” said Jean-Paul Reynaud, Senior Vice President, Antibiotics and Emerging Markets Supply.
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.
Brand names appearing in italics throughout this document are trademarks of GSK.
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About Dr. Reddy’s
Established in 1984, Dr. Reddy’s Laboratories (NYSE: RDY) is a global pharmaceutical company. We fulfill our purpose of providing affordable and innovative medicines through three core businesses: Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products. Our products are marketed globally, with a focus on India, US, UK, Germany and Russia. www.drreddys.com