DRL plans Rs 193-cr purchase of OctoPlus

We are buying it for technology. And we are in the process of improving our R&D capabilities globally: G V Prasad

Hyderabad-based drug maker Dr Reddy’s Laboratories today said it has decided to acquire Netherlands-based OctoPlus NV, a speciality pharmaceutical company, for about euro 27.4 million (about Rs 193 crore) through a public offer.

The transaction is expected to be completed by the end of the current financial year, company’s Vice Chairman and Chief Executive Officer G V Prasad said.

In a joint statement with OctoPlus, DRL said both the companies have reached a conditional agreement in connection with an intended public offer by DRL, or a wholly-owned subsidiary of DRL.

This is for all issued and outstanding ordinary shares in the capital of OctoPlus, at an offer price of euro 0.52 in cash for each OctoPlus share, it said. “It is currently expected that the offer memorandum will be submitted to the AFM for approval within five weeks from the date of this announcement and that the offer, if made, will commence during the first half of December,” the statement said. The offer values 100 per cent of the issued and outstanding ordinary shares of OctoPlus at euro 27.4 million, it added.

 

Prasad said the acquisition gives them the ability to strengthen technological capabilities in the area of drug delivery.