Shareholders of JB Chemicals and Pharmaceuticals have approved the board's decision to sell the prescription product portfolio in Russia and the CIS region to Dr Reddy’s Laboratories, JBCPL said today.
"The shareholders of the company have passed a resolution with requisite majority authorising the sale of Russia-CIS prescription products to Dr Reddy’s laboratories," JB Chemicals said in a filing with the Bombay Stock Exchange.
Dr Reddy’s Lab in July had announced that it has entered into an agreement with Mumbai-based JB Chemicals to acquire its pharmaceutical prescription portfolio in Russia and other CIS regions for $20 million.
The agreement involves acquisition of 20 brands, key ones being Metrogyl and Jocet. Dr Reddy’s has also entered into a supply agreement with JBCPL for continued manufacturing and supply of these products associated with the acquired brands.
Russia is one of the leading markets for DRL and this acquisition will help expand the prescription, hospital and OTC portfolio of the company there, DRL had earlier said.
JB Chemicals had recently completed a Rs 939 crore deal to sell its over-the-counter business in Russia and CIS countries to Johnson & Johnson arm Cilag GmbH International.