Dr Reddy's signs definitive agreement to sell its API business in Hyderabad

The business will be sold to Therapiva Pvt Ltd, a joint venture between Omnicare Drugs India and Laxai Life Sciences Private Ltd

Dr Reddy's Laboratories on Monday said it had signed a definitive agreement to sell its active pharmaceutical ingredient (API) manufacturing business unit located in Jeedimetla, Hyderabad, to Therapiva Pvt Ltd, an emerging generics pharmaceutical company. The divestiture by way of slump sale includes all related fixed assets, current assets, current liabilities, and its employees.

"The divestiture of our API manufacturing business unit is a step towards streamlining our manufacturing operations and optimizing our cost structures," Sanjay Sharma, the company's executive vice-president & head of Global Manufacturing Operations, said. "We are confident that we have found in Therapiva, a buyer-partner who fully understands and appreciates the business unit and its people as a powerful strategic asset."

Therapiva is a joint venture between Omnicare Drugs India Pvt Ltd (100% subsidiary of Neopharma LLC, Abu Dhabi) and Laxai Life Sciences Private Ltd.

Its CEO Vamsi Maddipatla said: "This acquisition represents a unique opportunity to further strengthen Therapiva's position as a premier supplier of APls. There is a strong cultural fit between our companies and we are excited to welcome the employees of Dr Reddy's to accelerate our ambitious growth plans."

BR Shetty, chairman of Neopharma LLC, Abu Dhabi, said: "We are very excited with this acquisition which will augment Neopharma's vertical integration advantage and provide us with a high quality manufacturing base in India. This is a key milestone in our acquisition strategy over the next few years to increase Neopharma's presence in the global generics space."