Dr. Reddy's To Sell API Manufacturing Business Unit In Hyderabad To Therapiva JV

(RTTNews) - Dr. Reddy's Laboratories Ltd. (RDY) announced Monday that it has agreed to sell its API manufacturing business unit located in Jeedimetla, Hyderabad, to Therapiva Private Ltd., an emerging generics pharmaceutical company. The financial terms of the deal were not disclosed.

The company said the sale is being done by way of slump sale, as a going concern, and includes all related fixed assets such as land and building, current assets, current liabilities, and its employees.

Sanjay Sharma, Executive Vice President & Head, Global Manufacturing Operations, stated that the divestiture of the API manufacturing business unit is a step towards streamlining manufacturing operations and optimizing cost structures.

Hyderabad-based Therapiva Private is a joint venture between Omnicare Drugs India Private Ltd, a unit of BR Shetty-owned Neopharma LLC, Abu Dhabi, and Laxai Life Sciences Private Ltd.

Therapiva said the acquisition would augment Neopharma's vertical integration advantage and provides it with a high quality manufacturing base in India.

BR Shetty, Chairman of Neopharma LLC, Abu Dhabi, said, "This is a key milestone in our acquisition strategy over the next few years to increase Neopharma's presence in the global generics space."