USA: Pharmaceutical Deal Dr. Reddy’s to Acquire Product Portfolio from Teva for US Market
Dr.Reddy’s Laboratories has entered into a definitive agreement with Teva Pharmaceutical Industries and an affiliate of Allergan to acquire a portfolio of eight Abbreviated New Drug Applications (ANDAs) in the US for US $ 350 million in cash at closing.
Hyderbad, India and Princeton, USA – The acquired portfolio consists of products that are being divested by Teva as a precondition to its closing of the acquisition of Allergan’s generics business. The acquisition of these ANDAs is also contingent on the closing of the Teva/Allergan generics transaction and approval by the US Federal Trade Commission of Dr. Reddy’s as a buyer. The portfolio being acquired is a mix of filed ANDAs pending approval and an approved ANDA, and comprised of complex generic products across diverse dosage forms.
The combined sales of the branded versions of the products in the US is approximately $3.5 billion MAT for the most recent twelve months ending in April 2016. Co-Chairman & CEO of Dr. Reddy’s Laboratories, GV Prasad, commented, “This transaction will add strength to our product portfolio, help us be more relevant in our US market and also create new opportunities for growth.” Dr. Reddy’s Laboratories is acquiring the portfolio on a cash-free, debt-free basis and expects to finance the transaction using a combination of cash on hand and available borrowings under existing credit facilities.