IndiaPost.com - Dr Reddy’s acquires contract for US-based BASF

MUMBAI: Home grown Pharma major Dr Reddys Laboratories (DRL) said it will acquire US-based BASF's pharmaceutical contract business and its manufacturing facility for an undisclosed amount. BASF's business which would be transferred to DRL, includes contract manufacturing of generic prescription and over-the-counter products for branded and generic companies in the United States, DRL said in a filing to the Bombay Stock Exchange.

The acquisition would also include the relevant businesses, customer contracts, trademarks, as well as the manufacturing facility and other assets of BASF in Louisiana. The manufacturing facility of BASF is designed to manufacture solid, semi-solid and liquid dosage forms and has a proven track record of compliance with regulatory authorities, including the US Food and Drug Administration (US FDA).

The acquisition is subject to necessary approvals and is expected to be completed in the first quarter of 2008-09 fiscal, DRL said. The company would fund the transaction from its internal cash reserve and other credit facilities. "The acquisition of BASF's finished dosage manufacturing facility in the US will enable us to strengthen our supply chain for North America and provide a strong platform for pursuing additional growth opportunities," DRL Managing Director and Chief Operating Officer Satish Reddy said. BASF has recorded a revenue of 43 million dollars in the calendar year 2007.