Dr Reddy's Laboratories is acquiring the portfolio on a cash-free, debt-free basis
Dr Reddy's Laboratories has entered into a definitive agreement with Teva Pharmaceutical Industries and an affiliate of Allergan to acquire a portfolio of eight Abbreviated New Drug Applications (ANDAs) in the US for $350 million in cash at closing.
The acquired portfolio consists of products that are being divested by Teva as a precondition to its closing of the acquisition of Allergan's generics business. The acquisition of these ANDAs is also contingent on the closing of the Teva/Allergan generics transaction and approval by the US Federal Trade Commission of Dr. Reddy's as a buyer
The portfolio being acquired is a mix of filed ANDAs pending approval and an approved ANDA, and comprised of complex generic products across diverse dosage forms. The combined sales of the branded versions of the products in the U.S. is approximately $3.5 billion MAT for the most recent twelve months ending in April 2016 according to IMS Health*.
Mr G.V. Prasad, co-chairman and CEO of Dr. Reddy's Laboratories, commented, "This transaction will add strength to our product portfolio, help us be more relevant in our U.S. market and also create new opportunities for growth."
Mr Alok Sonig, Executive Vice president and Head of North America added, "Dr Reddy's Laboratories has a strong track record in the US market with over 79 filed ANDAs pending approval, of which we believe 18 have first-to-file status. The acquisition of these attractive ANDAs from Teva will enhance our short-to-midterm aspirations and is consistent with our growth initiatives to identify inorganic opportunities to expand our base business."
Dr Reddy's Laboratories is acquiring the portfolio on a cash-free, debt-free basis and expects to finance the transaction using a combination of cash on hand and available borrowings under existing credit facilities.