Dr. Reddy’s Laboratories acquired some of Wockhardt’s branded generic business in India and other countries such as Nepal, Sri Lanka, Bhutan and Maldives for 259 million (USD).
The business to be acquired consists of a portfolio of over 60 brands in different areas of therapy such as respiratory, neurology, VMS (Vitamins, Minerals & Supplements), dermatology, gastroenterology, pain, and vaccines. These will strengthen its acute therapeutic segment (ailments for cough, cold and some pains and more.)
Analysts have said that this move aligns with Dr. Reddy’s Laboratories focused goal of growing its competitive presence in the Indian market, it has moved its place from the 16th to the 14th place, they aim to move up to the top 10 soon.
Although Wockhardt is selling away some of the pillars of their company, Mr. Khorakiwala (Founder/Chairman) says that this move is in line with their company’s current strategic plan of shifting their business from acute therapeutics areas to chronic business-like anti-diabetes and CNS.
This intended sale will help strengthen Wockhardt’s balance sheets and will enable enough liquidity for investing in its new venture to grow in international operations and investments in Biosimilars for the US market and its other R&D developments.
After the sale, Wockhardt will still continue to own its international operations in other countries through its subsidiaries.