Dr Reddy’s agrees to buy UCB business in India for Rs 800 crore
The deal will help Dr Reddy's strengthen its presence in dermatology, pediatrics and respiratory products, the company said in a statement to the Bombay Stock Exchange.
UCB, listed on Euronext Brussels, has operations in nearly 40 countries with revenues of 3.3 billion Euros in 2014. In a statement on Wednesday, the Hyderabad headquartered drugmaker said the established products business of UCB would cover the territories of India, Nepal, Sri Lanka and Maldives and the acquisition is on a slump sale basis.
Dr Reddy’s said the transaction includes approximately 350 employees engaged in operations of UCB’s India business and the revenue of the acquired business was approximately Rs 150 crore for calendar year 2014.
The Indian drugmaker said 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. The transaction is expected to be closed in the first quarter of the financial year 2015-16.
"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," said Alok Sonig, Senior Vice President and India Business Head.
UCB’s chief operating officer Mark McDade said, "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."
Further, he said, UCB was in a strong position with a solid platform for continuous growth thanks to its core products and its 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."