Dr Reddy’s Laboratories has entered into a definitive agreement for the sale of its API manufacturing business unit in Jeedimetla, Hyderabad, to Therapiva. Therapiva is a joint venture between Omnicare Drugs India, a wholly-owned subsidiary of Neopharma, Abu Dhabi, and Laxai Life Sciences.
The sale includes all related fixed assets which includes land and building, current assets, current liabilities and its employees, the company said in a statement.
“The divestiture of our API manufacturing business unit is a step towards streamlining our manufacturing operations and optimising our cost structures,” Sanjay Sharma, executive vice-president & head, global manufacturing operations of Dr Reddy’s Laboratories, said.
The company, however, did not disclose any financial details.
“This is a key milestone in our acquisition strategy over the next few years to increase Neopharma’s presence in the global generics space,” BR Shetty, chairman of Neopharma, Abu Dhabi, said