Dr Reddy's to acquire Roche's Mexican API business
Indian pharmaceutical company Dr Reddy's Laboratories has entered into a definitive agreement to acquire Roche's API business at the state-of-the-art, FDA-inspected manufacturing site in Cuernavaca, Mexico, including all 340 employees and business supply contracts.
Indian pharmaceutical company Dr Reddy's Laboratories has entered into a definitive agreement to acquire Roche's API business at the state-of-the-art, FDA-inspected manufacturing site in Cuernavaca, Mexico, including all 340 employees and business supply contracts.
The total investment outlay is about US$59m including working capital, and the deal is expected to be completed by the end of the year.
The business involves the manufacture and sale of APIs, including intermediates, to Roche and other innovator companies. The product portfolio currently comprises 18 products, including mature APIs and a range of intermediates and steroids. This acquisition also adds unique steroids manufacturing capabilities to Dr Reddy's.
'This strategic acquisition provides an opportunity for our custom pharmaceutical services business to grow from the current base of $10m to$100m over the next 18 months,' said GV Prasad, ceo, Dr Reddy's Laboratories. 'The integration of these businesses -- people and technology; the expertise of the management team and distinctive manufacturing capability at the Mexico site, with that of Dr. Reddy's strengths in process chemistry and world class research capabilities will provide a strong foundation to drive the next wave of growth in our CPS business.'