Dr Reddy's acquire Netherland-based OctoPlus
OctoPlus’ expertise in manufacturing improved injectable pharmaceuticals will support the existing capabilities of Dr Reddy’s.
Hyderabad, October 22, 2012: Dr Reddy’s Laboratories has picked up the entire equity holding of the Dutch injectable speciality generics maker OctoPlus NV for 27.39 million euros (Rs 191.72 crore) in an all cash deal. It is believed that the recently announced deal is one of the most significant acquisitions by Dr Reddy’s after it bought the German Pharma firm BetapharmArzneimittel GmbH in February 2006 for 480 million euros.
The India company believes that OctoPlus’ expertise in manufacturing improved injectable pharmaceuticals based on proprietary drug delivery technologies and focus on difficult to formulate active pharmaceutical ingredients will support its existing capabilities. For the foreign drug firm, the deal benefits its shareholders, more importantly, after the recent value erosion of its investments in Hepatitis-C manufacturer Biolex that had initiated bankruptcy liquidation process.
"We are happy to have an R&D base in Leiden area and the acquisition gives us the ability to strengthen our technological capabilities in the areas of drug delivery,” said GV Prasad, CEO,Dr Reddy's.
"Over the last few months, we have reviewed a number of alternative strategies for our company. We have concluded that the intended offer by Dr Reddy's best serves the interest of our key stakeholders, including our employees and stakeholders,” said Jan Egberts, CEO,OctoPlus.
Dr Reddy's has been following the OctoPlus’ business activities over a longer period and soon after it was convinced that the Dutch company has acquired competence in drug formulation and difficult to formulate injectables, the deal was announced.