Dr Reddy's to buy select UCB brands for Rs 800 cr

Hyderabad-based pharmaceutical major, Dr Reddy's Laboratories Limited, has entered into a definitive agreement to acquire a select portfolio of the established products business of UCB, a Belgian biopharmaceutical firm, in the territories of India, Nepal, Sri Lank and the Maldives for Euro 118 million (close to Rs 800 crore).

The acquired business is being sold on a slump sale basis. The transaction, which includes approximately 350 employees engaged in the operations of UCB's India business, is expected to be closed in the first quarter of the 2015-16 financial year, Dr Reddy's said in a press release on Wednesday.

According to Dr Reddy's, the revenues of the acquired business is approximately Rs 150 crore for the 2014 calendar. The acquisition of UCB's existing brand equity in the areas of dermatology, respiratory and pediatrics diseases will further expand Dr Reddy's therapy footprint into these fast-growing areas, it said.

"The acquired UCB portfolio will accelerate Dr Reddy's presence in the high-growth areas of dermatology, respiratory and pediatrics with market-leading brands like Atarax, Nootropil, Zyrtec, Xyzal and Xyzal M. We welcome UCB's employees to our growing global team," said Alok Sonig, senior vice-president and India business head, Dr Reddy's.

"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 the business forward," said Mark McDade, chief operating officer of UCB. Dr Reddy's scrip is currently trading at Rs 3,528.70 on the NSE, up 1.20%, over the previous close of Rs 3,488.75 a share.