Dr. Reddy's Laboratories announces the sale of its antibiotic manufacturing site and its related assets in Bristol, Tennessee
Deepthi | Myequity news | Date : 01-10-2018 9:25:00 IST
Dr. Reddy's Laboratories Ltd. today announced the closure of the sale of its antibiotic manufacturing facility and related assets in Bristol, Tennessee to Neopharma Inc., a wholly owned subsidiary of the UAE's largest pharmaceutical manufacturer headquartered in Abu Dhabi. Under the terms of the agreement, Dr. Reddy's sold all the issued and outstanding membership interests in Dr. Reddy's Laboratories Tennessee, LLC and certain related assets.
"This sale is in line with our stated priority to streamline and optimize our global cost structures and help us focus on other business priorities to drive growth," said Erez Israeli, Chief Operating Officer for Dr. Reddy's. "We are pleased that the agreement may provide continued employment opportunities for many of the experienced employees at the site."
Suresh Nandiraju, Chief Operating Officer of Neopharma Inc., said, "This acquisition is synergetic and will strengthen our product portfolio for driving long-term, sustainable growth by leveraging our global presence."
The plant and associated facilities focus on manufacturing or packaging amoxicillin-based products, which include semi-synthetic penicillin. The 390,000-square-foot facility is dedicated to secondary oral-solid dose penicillin manufacturing/packaging and includes processing, packaging, development, printing, and warehouse spaces. A separate 24,000-square-foot plastics-processing facility in Bristol is also included in the transaction. About Dr. Reddy's:
Dr. Reddy's Laboratories Ltd. is an integrated pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives. Through its three businesses - Pharmaceutical Services & Active Ingredients, Global Generics and Proprietary Products - Dr. Reddy's offers a portfolio of products and services including APls, custom pharmaceutical services, generics, biosimilars and differentiated formulations. Its major therapeutic areas of focus are gastrointestinal, cardiovascular, diabetology, oncology, pain management and dermatology. Dr. Reddy's operates in markets across the globe.