Dr Reddy's acquires Belgium-based UCB's select portfolio for Rs 800 cr

The Hyderabad-based Dr Reddy’s Laboratories has entered into a definitive agreement to acquire a select portfolio of the established products business of Belgium-based UCB in the territories of India, Nepal, Sri Lanka and Maldives for Rs 800 crores (Euro 118 million). The acquired business is being sold on a slump sale basis. The transaction includes approximately 350 employees engaged in operations of the India business. The revenues of the acquired business is approximately Rs 150 crores for calendar year 2014.
 
The acquisition of UCB’s existing brand equity in the areas of dermatology, respiratory and paediatrics diseases will further expand Dr Reddy’s therapy footprint into these fast growing areas.
 
Alok Sonig, senior vice president and India business head, Dr Reddy’s, said, “The acquired UCB portfolio shall accelerate Dr Reddy’s presence in the high growth areas of dermatology, respiratory and paediatrics with market leading brands like Atarax, Nootropil, Zyrtec, Xyzal, Xyzal M etc. We welcome UCB’s employees to our growing global team.”
 
Mark McDade, UCB’s chief operating officer, commented, "UCB is in a strong position with a solid platform for continuous growth thanks to our core products and our promising pipeline. This position allows us to enhance our focus on our key neurology portfolio in India, providing innovative solutions to patients living with severe diseases. Finding the right company for our established brands in India was crucial, and Dr Reddy’s knowledge of the local market, combined with their ambitious plans and excellent reputation, convinced us they were the right choice to drive this business forward.”
 
The transaction is expected to be closed in the first quarter of the financial year 2015-16.
 
UCB, Brussels (Belgium), is a global biopharmaceutical company focused on the discovery and development of innovative medicines and solutions for diseases related to immune system or central nervous system. With more than 8500 people in approximately 40 countries, the company generated revenue of Euro 3.3 billion in 2014.